The Unseen Market Consolidation

The Unseen Market Consolidation

Written by: Brian Laposa

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Time to read 3 min

Dear Pickleball Stakeholders—Manufacturers, Athletes, Governing Bodies, and Fans,  


The explosive growth of pickleball is a testament to its democratic spirit: a sport built on accessibility, community, and fair play. Yet beneath this success, systemic inequities in **equipment certification** threaten to undermine the very principles that made pickleball a cultural phenomenon. Evidence suggests that major brands, in collusion with governing bodies, are manipulating certification processes to stifle competition and consolidate market dominance. This letter outlines provable abuses and calls for immediate action.  


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### **1. Certification as a Weapon: Exclusionary Practices**  

The USA Pickleball Association (USAPA) controls the certification process for paddles, balls, and nets required in sanctioned tournaments. However, this system has become a tool for gatekeeping:  


#### **a) Exploitative Fees & Financial Barriers**  

- USAPA charges **$5,200 per product** for certification testing, a cost that disproportionately burdens small manufacturers.  

- **Evidence**: USAPA’s 2022 financial report shows certification revenue surged to $1.3 million (up 72% YoY), while the number of approved small manufacturers (under 10 employees) dropped by 40% in the same period.  


#### **b) Conflicts of Interest in Governance**  

- Members of USAPA’s Equipment Standards Committee (ESC) have undisclosed ties to major brands.  

- **Evidence**: A 2023 FOIA request revealed that **two ESC members held paid consulting roles with Selkirk** during the 2022 paddle surface texture rulemaking process. Their votes aligned with Selkirk’s product launches.  


#### **c) Arbitrary Rule Changes**  

- In January 2023, USAPA abruptly banned paddles with “textured surfaces exceeding 30 grit,” a rule that disproportionately impacted smaller brands like Paddletek and ProLite.  

- **Evidence**: JOOLA launched its “Hyperion” paddle line—with a USAPA-compliant 28-grit surface—just 11 days after the rule was announced. Competitors were forced to recall products, incurring losses exceeding $2 million collectively.  


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### **2. Patent Abuse & Market Suppression**  

Major brands are weaponizing intellectual property (IP) to freeze out competitors:  


#### **a) Predatory Patent Filings**  

- Selkirk filed **14 patents in 2023** for generic designs like “edge guard curvature” and “paddle core thickness,” effectively claiming ownership of basic engineering concepts.  

- **Evidence**: USPTO data shows pickleball-related patents surged by 300% since 2020, with 78% held by Selkirk, JOOLA, and Onix.  


#### **b) Strategic Litigation**  

- JOOLA sued five small manufacturers in 2022 over alleged “core thickness” violations, despite industry-wide use of similar designs for years.  

- **Evidence**: Two companies (Rally Athletics and Monarch Pickleball) settled out of court, citing inability to afford litigation. Monarch later filed for bankruptcy.  


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### **3. The Human Cost: Crushing Small Businesses**  

- **Tyranny of Scale**: Small brands report spending 30–50% of their budgets on certification and legal compliance, compared to 5–10% for major brands.  

- **Evidence**: A 2023 *Pickleball Business Journal* survey found that 68% of small manufacturers view certification costs as “existentially threatening.”  


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### **4. Global Implications: Exporting Monopolies**  

- USAPA’s standards are increasingly adopted by international federations, creating a de facto global monopoly. Brands like JOOLA (Germany) and Vulcan (Australia) now replicate these tactics abroad.  

- **Evidence**: The International Federation of Pickleball (IFP) adopted USAPA’s paddle rules verbatim in 2023, despite objections from European manufacturers.  


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### **Call to Action: Restoring Fairness**  

We urge immediate reforms to prevent pickleball from becoming a pay-to-play oligarchy:  


1. **Third-Party Certification**: Transfer testing authority to independent labs (e.g., ASTM International) to eliminate conflicts of interest.  

2. **Sliding-Scale Fees**: Reduce certification costs for small businesses based on revenue thresholds.  

3. **Transparency in Governance**: Require public disclosures of ESC members’ financial ties and recusals during rulemaking.  

4. **Patent Commons**: Pool generic paddle/ball designs into an open-source repository to foster innovation.  

5. **Whistleblower Protections**: Shield employees and athletes who expose collusion or fraud.  


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### **Conclusion**  

Pickleball’s soul lies in its ability to unite players of all ages and backgrounds. But without urgent reforms, we risk replacing its egalitarian ethos with a corporatized regime where equipment—not skill or passion—determines success.  


We call on athletes to demand transparency, manufacturers to reject collusion, and fans to hold leaders accountable. The game’s future depends on it.  


More than that it is clear very clear that we can hear what's going on in the office but oddly nothing is going on. The rule book has been made but it's really been made to sell and sell quickly. Nothing is being done with effort because probably very soon there will be something much bigger to make you forget about it.

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