According to NCAA statistics, less than 2% of NCAA athletes go on to play professional sports.
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A bipartisan committee on Capitol Hill opened an investigation into the role of private equity in youth sports on Tuesday, a possible sign that Congress may be getting closer to intervening.
The hearing, titled “The Field of Fees: The Role of Private Equity in the Commercialization of American Youth Sports,” took place as Wall Street continues to expand its presence in youth sports. Parliamentarians from both political parties expressed concern over this trend, as well as looking for solutions to avoid increasing prices for youth participation in sports.
“In some markets, consolidation is increasing costs for families while limiting access to more affordable, community-based options,” said Representative Kevin Kiley, chairman of the House Early Childhood, Elementary and Secondary Education Subcommittee. “The results are clear: the growing participation gap.”
“The simple reality is that too many kids are being priced out. It’s not that they lack talent or determination; it’s that their families can’t afford the rising costs,” said Kelly, a California independent who works with Republicans.
Kelly presided over the hearing three weeks after Brand Velocity Group, the private equity firm of former New York Giants quarterback Eli Manning, announced it would acquire RCX Sports, a company that manages the licensing of official youth sports programs for professional sports leagues. Kiely said that while some private capital has helped expand access, the committee is concerned about “special practices that reduce competition, increase costs and limit access for families.”
“Simply put, we should encourage models that expand opportunities, while discouraging practices that leave parents with fewer choices and higher bills,” Kiely said.
With the Aspen Institute estimating that youth sports is now a $40 billion industry in the U.S., private equity has taken notice with myriad large-scale purchases in recent years. In 2023, then-private equity firm BPEA EQT bought sports-education institute IMG Academy for $1.25 billion. KKR to buy apparel maker Varsity Brands in 2024 for $4.75 billion
Rep. Susan Bonamici, D-Ore., also expressed concern about the increased investment.
“Youth sports are the latest example of how unchecked market forces can make everyday opportunities less accessible to families,” Bonamici said.
They suggested considering increased transparency around fees and business practices, stronger antitrust enforcement, and increased public investment in community recreation and school-based sports programs to help bridge the gap.
Representative Burgess Owens, R-Utah, a former professional football player, expressed concern that private equity investment in youth sports could lead to a focus on investor returns rather than youth opportunity.
“Investment is important, but it’s when the missions are our kids, not the investors,” Owens said. “We are seeing too much of this. If we don’t get this right we will lose the soul of our nation.”
Owens said some investors are “doing it the right way,” but said Congress needs to make sure “bad actors” are kept out.
Brian Finnerty, founder of High Velocity Sports Group and a witness at the hearing, said the private equity investment helped him create a “community sports center focused first and foremost on serving local families.”
“I have seen responsible investment strengthen communities by increasing access, improving facilities and creating opportunities for children,” he said. “I have also seen business models that prioritize financial extraction over child development… I don’t believe the question is whether private capital belongs in youth sports, I believe the question is whether it is accountable to the mission of youth sports.”
