Hearing Recap: “Field of Fees: Private Equity’s Role in the Commercialization of American Youth Sports”

Today, the Subcommittee on Early Childhood, Elementary, and Secondary Education held a hearing to examine private equity’s role in youth sports and whether today's system is working for kids and families. 

Subcommittee Chairman Kevin Kiley (I-CA) started the hearing by explaining that youth sports have become too focused on profit, leaving too many kids on the sidelines.  

“Some operators have used strategies that prioritize revenue over participation. Families report higher fees, mandatory add-on costs, stay-to-play requirements that force them to book hotels and lodging through affiliated partners, vertical integration that requires participation in the same operator’s leagues, tournaments, camps, and streaming services. These practices can limit consumer choice while making youth sports more expensive,” he said. 

Witnesses echoed that many families are facing higher costs and fewer affordable options. 

“The high cost of play has shrunk sports participation among the poorest children, denying them the physical, emotional, and cognitive benefits that moderate physical activity provides. An avalanche of evidence reveals that age-appropriate exercise spurs good health and wellbeing,” said Ms. Linda Flanagan, author. 

Mr. Matt Kakabeeke, Executive Director at Kalamazoo Optimist Hockey Association, discussed with Rep. Burgess Owens (R-UT) his own experience with larger youth sports organizations squeezing out smaller community programs.
 
“Within 30 seconds of meeting…the director of operations in Michigan he... demand[ed] we change our name, our logo, all of our programming. [I] was advised that the participant fees would be increasing…we’d have to cut back services at the same time,” Mr. Kakabeeke said.

While private investment can lead to higher fees in some cases, it also provides necessary capital to build facilities, train coaches, improve technology, expand operational capacity, and deliver higher quality experiences. 

Mr. Bryan Finnerty, Founder of High Velocity Sports, told Rep. Mark Harris (R-NC) that investment in youth sports should put children first and focus on creating opportunities for local kids.
 
“Not every eight-year-old is going to get a college scholarship or turn pro. At the same time, if they are happy and healthy and ultimately want to play club [sports] when they get to college then I think we’ve done our job,” said Mr. Finnerty. 

Responsible private investment, paired with strong public partnerships, can help expand access so more kids receive the benefits of youth sports while still keeping costs manageable for families.

In an exchange with Rep. Mike Rulli (R-OH), Mr. Finnerty highlighted models that successfully combine private investment with broader community access.
 
“I think if you’ve got a supporting organization…[helping] give access to hundreds of kids that wouldn’t get it otherwise—that’s a really good harmony. We get to do outreach because there is a larger organization wanting to do more in our community,” said Mr. Finnerty.

Bottom line: 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.