Youth sports is a $40 billion industry and it’s a money-maker for private equity firms. For-profit companies now control youth sports leagues, teams, venues, scheduling, software, uniforms, streaming services, hotels, and even merchandising sales at events. Parents are paying nearly double the costs in the last five years – and it’s taking many kids out of the game.
Soccer is a prime example of how low-wealth kids can’t make it to the upper echelons. Families pay hundreds of dollars for their six-year-old to play recreational soccer and thousands of dollars for their 12-year-old to play competitive “travel soccer.”
But it’s not just limited to soccer. In PA, Black Bear Sports Group owns 11 ice rinks, plus leagues and clubs. Their lesson prices at acquired rinks have jumped from $55 to $200.
In youth baseball, Perfect Game is dominating the field, now operating in 41 states including PA. Their revenue is up more than 400% since 2018 and will top $100 million this year.
“The parents were so stretched. It was so difficult. Which means that there will be players and children out there that we just lost to the system, they never even had an opportunity to play at that level,” observed Matt Crocker, the former U.S. Soccer Sporting Director.
And it’s not just about the denied opportunity for low-wealth kids to make it to the pros. Sports builds character and teamwork, develops healthy bodies and minds at a critical developmental age, and offers a place of belonging at an time when too many kids are feeling disconnected.
Sadly, the same kids who can’t afford to play in the expensive teams are the same kids who live in neighborhoods that don’t have quality athletic fields or many community-based teams. For every good program like Kensington Soccer Club or the Kingsessing Recreation Center, there are dozens of Philadelphia fields and courts that are in decay.
There are also just not enough after school and summer activities to keep kids engaged. According to a soon-to-be-released report by Research for Action, there are 189,125 Philadelphia children in K-8 but only 76,041 after school program seats, and even fewer summertime slots (63,424).
The concept of rich investors making money off of young athletes’ dreams seems so fundamentally un-American that even Congress is getting involved. “Some operators have used strategies that prioritize revenue over participation. Families report higher fees, mandatory add-on costs, stay-to-play requirements…” said Rep. Kevin Kiley (I-CA) at last month’s hearing on Private Equity’s Role in the Commercialization of American Youth Sports.
The bipartisan committee concluded that “youth sports should be about helping kids grow and giving every child a chance to play – not finding new ways to charge parents more money.” That conclusion is a gooooal! for kids for sure.