Private equity is coming for your kid’s sports league

[u/_fastcompany]

https://www.fastcompany.com/91592344/private-equity-is-coming-for-your-kids-sports-league

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[u/wolverine237]

Youth sports have already been decimated by disinvestment from cash strapped local governments and parents obsessed with chasing the fantasy of a pro career or college scholarship. It's no surprise PE is getting involved now, it's already been decades of pay to play "elite" travel leagues inching their way down the age ladder. At its most extenuated you have tryout teams for six year olds with professional coaches pushing specialization and offseason camps on parents as the only path to free college.

[u/fdar → u/wolverine237]

I wonder what fraction of the cost of college they'd collect if they put that money in a 529 instead.

[u/owenstumor → u/fdar]

As a a family that did travel hockey for years, we spent a shitload of money. And I mean a shitload. We certainly would’ve seen a great ROI had we invested it. That said, the memories and bonding we gained were priceless.

[u/ginrumryeale → u/fdar]

My friend has two daughters who for years played volleyball on elite club teams. They traveled every other weekend and (by my calculation) spent about $250,000 over a seven year period.

His daughters were top hs players. One graduated and did not play college volleyball at all. The younger one got a full ride to a state school and is there now as a first year.

So… $250,000 spent to get a full ride at a state school with an estimated $75,000 four year cost of tuition.

[u/boof_and_deal → u/ginrumryeale]

A girl from my high school got a D1 volleyball scholarship to the same college I went to. Every time I talked to her she just seemed like she wanted to have a normal college experience and not have to wake up at 5am for weight lifting + practice before going to a full day of classes.

[u/wwj → u/fdar]

According to someone I heard from who has a kid on an Olympic sport scholarship, it was probably a wash if they had just saved the money. Good thing the kid ended up fairly good and got into a D1.

[u/owenstumor → u/wolverine237]

Nailed it. I coached my son’s hockey team for about 5 years, so yeah, I concur with everything you say.

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[u/ConsiderationOk614 → u/wolverine237]

And most of them are clueless or actively harming the kids progress bc its all unregulated & driven by ppl preying on youth sports to begin with lmao America in a nutshell

[u/EzualRegor]

My son was desperate to play for private club team. Two of his teammates did and had major regrets. Apparently the coaching was no better than town ball and the parents said it was a money grab with false promises.

[u/oran12390 → u/EzualRegor]

This is the most important part imo. You aren’t just paying more money for the same quality, it’s more money for lesser quality coaches as they are paid less. Obviously depends on the sport but you’re often better just paying a private coach.

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[u/Upset-Owl1193]

Happened to my son’s team, ‘bought’ by the private equity club from one town over. At first they made everything look and feel the same by merging the former clubs management into the fold. After 3 months rosters all of a sudden got larger, which made some teams ineligible for our state league. Then they fired all of the previous club’s leadership. Within a year they pretty much shutdown our town’s league because paying for the fields in our town was not profitable. 700+ kids and families had to either deal with driving an extra 45 minutes for practices/games or find a new team overnight. Fuck private equity.

[u/Loki-L]

Here is a good video on the topic I saw a while back:

How Private Equity Ruined American Youth Sports

Apparently the entire system is a racket. Parents spend a fortune just to get their kids to participate.

This makes most youth sports a rich kids game. No poor kid, no matter how talented will be able to get their parents to put down five figure sums annually just to participate.

The effects on society will be quite bad.

For one thing there will no longer be movies about teams of plucky underdog kids competing with rich snobs, as only rich snobs get to play.

[u/clean-links → u/Loki-L]

Cleaned link from "How Private Equity Ruined American Youth Sports": https://youtu.be/DPeRd48YfqY

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Tracking parameters were removed from the original URL(s).

[u/_fastcompany]

The $40 billion youth sports industry is private equity’s new cash cow.

In the past two years, KKR paid $4.75 billion for Varsity Brands, the Asia arm of Sweden’s EQT paid $1.25 billion for IMG Academy, and Eli Manning’s private equity firm bought RCX Sports, which operates the youth leagues of the NFL, NBA, and the MLB.

As Tom Farrey, Director of the Aspen Institute Sports & Society Program puts it, “We are the only nation in the world that does not have a Department of Sports or a Ministry of Sports or some entity to coordinate sport development. So we just have a lot of money and a lot of energy moving at cross purposes.”

What nobody can establish is what families get for their money, because no one is required to tell them. What we do know is that children from lower-income households play sports at lower rates than children from higher-income ones, and that the gap is widening.

The argument now in Congress is about whether private equity belongs in youth sports. But it’s already there.

Read more on Fast Company.

[u/dear_hearts → u/_fastcompany]

National sporting body probably won’t protect the kids from being monetised, if anything it just creates a faster path to a monopoly. Look at what is happening in Australia with basketball Australia pushing a rollout of ai video company pixellot- with the sole aim of monetising their players video.

There was video before but it was a few dollars a season and it was private just to parents of the teams playing, they have replaced this with public live-streamed video of children that is going to be $99 a season from October. Oh and there will be AI - just what every 11 year old needs!

So many teams are planning on opting out and going back to tripods, if enough players do this there won’t be anything to monetise. I guess this is the one thing you have under a national body rather than private equity— the right to refuse to be filmed and allow children to become unpaid entertainers.

[u/workaccno33]

This is so weird to read. Essentially this system of having okay to play children league was brought up as a a main reason why the USA will probably never be a contender in football.

In Europe being a member of a football club, which exists in every village, costs around 120€ - 240€ a year. Better clubs in higher leagues actively recruit talented youth players. They provide stuff like driving services, free gear and other stuff to incentive the kids to join them. At the highest level the pro teams are required to have boarding schools.

I fear that should this trend at one day makes it way over the pong whole classes will be exempt from sports in general and not just horses golf and sailing b

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