Thinking of Buying an Indoor Sports Business in Australia? Here Are 3 Vital Questions to Ask

Australia’s sports industry continues to perform strongly, generating $20.1 billion in 2025 across more than 12,000 enterprises and employing approximately 110,000 people.

The indoor sports segment — covering gyms, fitness centres, courts, and private facilities for sports such as basketball, netball, futsal, squash, and cricket — has seen renewed growth since 2023, driven by record levels of sports participation and the recovery of event attendance post-pandemic.

While the broader sector is expected to grow by 1.4% annually through 2031, indoor venues are forecast to outperform this average due to sustained participation demand and private investment in purpose-built facilities.

1. Does the Business Have Strong Participation and Facility Utilisation Rates?

Why It Matters:

Profitability in indoor sports businesses relies heavily on consistent player participation, team registrations, and facility bookings. Sustained utilisation ensures stable cash flow and allows operators to manage costs like rent, staff wages, and maintenance.

What to Check:

• Occupancy and bookings – Facilities achieving above 70% utilisation during peak hours are typically profitable.

• Participation trends – National sports participation has grown 1.05% annually since 2001, with local leagues for basketball, futsal, and netball driving year-round demand.

• Corporate and school partnerships – Many centres supplement evening league play with daytime bookings for schools, community programs, and fitness training.

• Revenue stability – Steady enrolment in social competitions and training sessions provides a reliable base against seasonal fluctuations.

• Facility management systems – Modern booking software and digital check-in systems reduce administration time and improve repeat business.

2. How Strong Is the Location Advantage and Market Competition?

Why It Matters:

The geographic spread of sports businesses is tightly linked to population density. The eastern states — New South Wales, Victoria, and Queensland — account for over 80% of all sports enterprises, driven by high urban concentration and community engagement.

What to Check:

• Catchment area – A high-performing indoor sports venue generally draws from a 10–15 km radius of its urban base.

• Demographics – Participation is highest among consumers aged 18 to 34, though older demographics contribute more through memberships and casual play.

• Competition – While gyms have captured much of the exercise market, community sport participation remains strong; new niche activities like pickleball and padel are expanding opportunities.

• Partnerships and leagues – Connection with local councils, schools, and sporting associations boosts brand recognition and ensures regular bookings.

• Event hosting – Facilities that host weekend tournaments or regional events benefit from additional exposure and sponsorship.

3. Is the Business Positioned for Future Participation and Infrastructure Growth?

Why It Matters:

With the upcoming 2032 Brisbane Olympics and major state infrastructure investments, the indoor sports sector is expected to gain significantly from new facilities, technology adoption, and participation programs. Businesses that align with these trends are more likely to thrive.

What to Check:

• Infrastructure pipeline – Federal and state governments are expanding sports infrastructure, including new stadiums and recreation centres, with over $945 million in active projects such as Tasmania’s Macquarie Point Stadium.

• Technology integration – Facilities using digital scoring, player-tracking apps, and energy-efficient lighting see better retention and lower operational costs.

• Sustainability – Energy-efficient design, solar systems, and low-waste operations increasingly influence local council lease approvals.

• Emerging sports – New entrants like indoor cricket, pickleball, padel, and futsal are creating opportunities for diversification and off-peak utilisation.

• Regulatory awareness – Compliance with Work Health and Safety (WHS) standards and sports insurance requirements is essential for operating licensed facilities.

Ready to Invest in a Thriving Indoor Sports Business?

With participation rebounding, strong infrastructure spending, and increasing interest in social and niche sports, the indoor sports sector presents a stable long-term opportunity.

Well-managed venues with high utilisation, strong community ties, and forward-looking technology investments are best placed to capture this sustained growth.

For Buyers:
Create an account to set up alerts here.

For Sellers:
Sell Your Business here.