8-K: Mitesco Partners with Sportzfolio for Pickleball Platform

Mitesco, Inc., through its Centcore division, has partnered with Sportzfolio, LLC to launch a new digital platform for listing and marketing pickleball properties, including a revenue-sharing agreement.

Summary

• Mitesco, Inc. (via its Centcore division) entered a three-year agreement with Sportzfolio LLC, a newly formed entity focused on listing businesses in sports, initially pickleball.
• The partnership aims to create a digital marketing and property listing platform tailored for commercial athletic facility opportunities.
• Mitesco will design, build, and deliver the initial software platform, provide ongoing software development and support, and host the application in the Centcore data center.
• Sportzfolio will pay Mitesco $20,000 for the initial software development, with payments structured as $10,000 upon agreement execution, $5,000 upon presentation of an operational working model, and $5,000 upon delivery of the completed platform.
• Mitesco will receive 5% of the gross revenue generated by Sportzfolio from all monetization streams of the site.
• Sportzfolio agrees to exclusively utilize Centcore Data Center for all hosting and infrastructure services for a minimum term of 3 years, with Centcore waiving standard retail hosting fees in exchange for the margin share.
• The agreement has an initial term of three years from execution, with automatic one-year renewals unless terminated.
• Either party may terminate the agreement without cause upon 60 days' written notice after the initial three-year term, or for cause if a material breach is not cured within 30 days.
• Upon termination, Sportzfolio has the option to buy out Mitesco's equity interest in revenue participation for an amount equal to 2x trailing 12-month Mitesco share.
• All custom code, branding, and content developed for the Platform will be the property of Sportzfolio, excluding any pre-existing modules or infrastructure IP developed independently by Mitesco or Centcore.
• Mitesco issued a press release on September 7, 2025, providing an update on this agreement and forward-looking plans.

Sentiment

Score: 7

Explanation: The agreement represents a positive new business venture for Mitesco, leveraging its existing infrastructure and development capabilities in a high-growth market. The revenue share and development fee provide new income streams. However, the 5% revenue share could be seen as modest, and the IP ownership structure favors Sportzfolio for the custom platform, introducing some limitations for Mitesco.

Positives

• Secures a new three-year agreement for Mitesco's Centcore division, providing a stable revenue stream from software development and hosting.
• Mitesco receives $20,000 for initial software development, providing immediate cash flow.
• Mitesco gains a 5% revenue share from a potentially high-growth market (pickleball properties), aligning its success with the platform's performance.
• Leverages Centcore's existing Tier 3+ data center infrastructure, optimizing asset utilization and generating additional business for the division.
• Positions Mitesco in the rapidly expanding pickleball industry, which saw over 36 million U.S. participants in 2024, indicating strong market demand.
• The platform operates strictly as a marketing and advertising service, avoiding compliance or liability risks associated with commission-based brokerage models.
• Mitesco retains the non-exclusive right to list the platform in its portfolio, enhancing its reputation and marketing capabilities for future projects.

Negatives

• The 5% revenue share might be considered low given Mitesco's development and hosting contributions, especially if the platform achieves significant scale.
• Sportzfolio owns the custom code, branding, and content developed for the platform, limiting Mitesco's direct intellectual property ownership in the core product.
• The agreement can be terminated without cause after the initial three-year term with 60 days' notice, introducing future uncertainty regarding the revenue stream.
• The buyout option for Mitesco's revenue participation (2x trailing 12-month share) upon termination might undervalue the platform's future growth potential.
• The specific feature set and monetization streams (Exhibit A: 'sports discussion rev c') were deemed confidential and not included in the public filing, limiting transparency on the platform's full scope and potential.

Risks

• Market Adoption Risk: The success of the platform and Mitesco's revenue share depend on the adoption rate by property owners, developers, municipalities, and investors in the niche pickleball real estate market.
• Competition Risk: Potential for other platforms or traditional real estate channels to emerge or expand, competing for listings and users in the pickleball property market.
• Termination Risk: Either party can terminate the agreement after three years with 60 days' notice, or for material breach, which could significantly impact Mitesco's anticipated revenue stream.
• Revenue Volatility Risk: Mitesco's 5% revenue share is directly tied to Sportzfolio's gross revenue, which could be volatile depending on market conditions, platform performance, and Sportzfolio's operational execution.
• Intellectual Property Risk: While Mitesco retains IP for pre-existing modules, the custom platform IP belongs to Sportzfolio, limiting Mitesco's direct control over the core product's future development and strategic direction.
• Forward-Looking Statement Risk: The press release contains forward-looking statements that are subject to substantial known and unknown risks and uncertainties, including the ability to obtain additional financing and potential litigation, which could cause actual results to differ materially.

Future Outlook

The partnership aims to capitalize on the surging demand in the pickleball market by providing a secure, scalable, and cost-effective digital hub for listing and marketing properties. Management anticipates the platform will become the go-to destination for pickleball real estate, driving exposure and growth for entrepreneurs, municipalities, and developers. The platform is designed to serve the long-term needs of the industry and lay the digital foundation for pickleball's next decade of expansion.

Management Comments

• "This is more than a listing site its an engine for exposure and growth. Our Tier-3+ data center infrastructure ensures the platform runs with enterprise-grade reliability and security, while Sportzfolio brings deep expertise in sports-focused market development. Together, we are creating a central hub that helps entrepreneurs, municipalities, and developers unlock the enormous potential of pickleball." Brian Valania, General Manager of Centcore.
• "Pickleball is more than a sport its a cultural shift thats driving demand for new spaces and new opportunities. By teaming up with Centcore, we can deliver a platform that is secure, scalable, and built to serve the long-term needs of this industry. This is about building an ecosystem where athletes, developers, and communities all win." Dave Conord, CEO of Sportzfolio, LLC.
• "Sportzfolios mission has always been to empower growth in sports through innovative partnerships. This collaboration allows us to extend that mission into one of the fastest-growing recreational markets in the country. Together, were laying the digital foundation for pickleballs next decade of expansion." Dave Conord, CEO of Sportzfolio, LLC.

Industry Context

The announcement positions Mitesco and Sportzfolio to capitalize on the explosive growth of pickleball, which has become the fastest-growing sport in the U.S. with over 36 million participants in 2024. This trend is driving significant demand for dedicated courts, training centers, and lifestyle facilities. The platform addresses a clear market need for a specialized digital hub to connect stakeholders in this rapidly evolving real estate segment, differentiating itself by focusing on marketing and advertising rather than brokerage, potentially reducing regulatory hurdles compared to traditional real estate platforms.

Comparison to Industry Standards

• The partnership leverages Centcore's Tier 3+ data center infrastructure, which is a high standard for reliability and security, comparable to enterprise-grade data centers used by major cloud providers, ensuring robust platform operation.
• The revenue-sharing model (5% of gross revenue) is a common approach in platform partnerships, though the specific percentage can vary widely based on the value proposition and investment from each party. Without specific comparable platforms in the niche pickleball real estate market, it is difficult to benchmark the fairness of this split precisely.
• The $20,000 software development fee for an initial platform (MVP) is a reasonable cost for a minimum viable product, depending on the complexity detailed in the undisclosed 'sports discussion rev c' (Exhibit A).

Stakeholder Impact

• Shareholders: Potential for increased revenue and market exposure in a growing industry, which could positively impact share value over time.
• Employees (Centcore/Mitesco): New work for software development and data center operations, potentially leading to job stability or growth within the Centcore division.
• Customers (Sportzfolio): Will benefit from a secure, scalable platform for listing and marketing pickleball properties, facilitating market connections.
• Partners (Sportzfolio): Gains a technology partner with robust data center and development capabilities, crucial for launching and scaling their platform.

Next Steps

• Mitesco to design, build, and deliver the Athletic Property Listing & Marketing Platform.
• Sportzfolio to make scheduled payments for software development ($10,000 upon execution, $5,000 upon operational model presentation, $5,000 upon delivery).
• Sportzfolio to exclusively utilize Centcore Data Center for hosting for a minimum of 3 years.
• Sportzfolio to provide quarterly revenue reports and remit Mitesco's 5% share within 15 business days of quarter close.
• Ongoing software development and support by Mitesco.
• Hosting of the application in the Centcore data center.

Key Dates

Recommendation

While the partnership with Sportzfolio represents a positive strategic move for Mitesco, providing new revenue streams and exposure to the rapidly growing pickleball market, the immediate financial impact from the $20,000 development fee and 5% revenue share is likely to be modest relative to the company's overall operations. The long-term success hinges on the platform's adoption and the scale of the pickleball real estate market, which carries inherent risks. Given the early stage of this venture and the limited financial details provided, a 'hold' recommendation is appropriate, awaiting further operational and financial results from this new initiative to assess its material contribution to Mitesco's valuation.

Keywords

Mitesco, Centcore, Sportzfolio, Pickleball, Data Center, Software Development, Revenue Sharing, Sports Technology, Real Estate Platform, Digital Marketing, Athletic Facilities, Partnership, SEC Filing, 8-K