The Rising Costs of Youth Sports

By Ian Grimley

Treasurer, Board of Directors

Recently, I saw a video that explained how private equity has helped turn youth sports into big business.  Youth sports in the United States now generates approximately $40 billion annually, more than the NFL and NBA combined.

The model that private equity firms follow finds them buying companies not traded publicly to increase profits, often by cutting costs, raising prices, and assuming debt, all in the name of a business decision to adapt to a changing landscape.  This model helped sink chains like Payless, Sears, Toys “R” Us, and Red Lobster.  They didn’t disappear because customers vanished; they disappeared because a decision was made, whether innocent or nefarious, to prioritize short-term profit over long-term investment.

Private equity has also played a major role in the housing crisis, both in the United States and abroad.  Corporate investors have purchased massive numbers of single-family homes and apartment complexes.  In many cities, these firms now rank among the largest landlords, giving them a monopoly to drive up prices.

In other words, private equity views everyday institutions as financial assets.

Over the past decade, private equity firms have been buying up youth sports clubs, tournament operators, training facilities, recruiting platforms, and equipment and uniform companies.  One of the biggest entities is Unrivaled Sports, launched in 2024 by Josh Harris and David Blitzer, two veteran private investors who also own the New Jersey Devils, Philadelphia 76ers, Washington Commanders, and Crystal Palace FC.  Another major player is 3StepSports, which owns hundreds of club teams across the country.  Between them, these firms now control clubs, athletic complexes, youth leagues, camps, uniform manufacturers, scheduling platforms, and media outlets.

It’s easy to see where this is heading.  Consider some of these new factors:

-Families with kids on travel teams are now forced into “stay-to-play” arrangements, requiring them to book hotels at rates 30-50% higher than normal because of an agreement or relationship between the hotels and the teams/leagues/tournaments.  Those who try to stay elsewhere often face hotel “breakage fees” ranging from $300 to $1000.

-Groups such as Black Bear Sports Group, owned by private equity firm Blackstreet Capital (the largest owner of ice rinks in the US), have banned parents from recording their own children playing hockey at its facilities.  Instead, if parents want to review film either to help their child improve their craft or simply keep memories, they now must pay $25-$50 per month for a streaming service for the privilege.

The message to parents is clear:  pay up, or your kid gets left behind.  In the process, some of the most important lessons sports should teach, such as teamwork, sportsmanship, discipline, fitness, and fun, are being left for dead.

The financial consequences are staggering.  The average American family now spends over $1000 per year on a single primary sport for their child, a 46% increase since 2019, far outpacing inflation.  Travel teams, specialized training, and equipment push that number much higher.  For many families, youth sports now feel like a second mortgage.

This shift has cultural consequences as well.  Kids are being pushed into early sports specialization at younger ages, despite strong evidence that young athletes benefit from playing more than one sport.  This increases the likelihood of burnout, stress, and overuse injuries.

The bad news is that those looking to profit off parents’ hopes for their kids aren’t going away.  The good news is that we still have the power to protect what makes youth sports special.

We can start by supporting community-based leagues and programs.  Municipal parks and recreation leagues, school teams, and nonprofit clubs typically prioritize sportsmanship, development, and fun over profit.  When economically feasible, school boards and town councils need to hear how important it is to responsibly invest in facilities.  Public funding can help make youth sports more accessible.

Perhaps we should try to reject the pressure narrative.  Ten-year-olds usually do not need to be on three travel teams to succeed.  They rarely need year-round private coaching or early specialization.  When parents focus on their kids’ enjoyment and growth rather than chasing athletic scholarships or professional careers, it can lead to better sportsmanship in the stands as well.

We must also reject the “one-path-to-success” myth.  Fewer than 7% of high school athletes go on to play a sport in college.  An even smaller fraction will play professionally.  For most kids, sports are not about compiling a highlight reel for college recruiters or pro teams; they’re about having fun, making friends, and learning lessons they’ll take into adulthood.

Parents should make the decision not to sit idly by and allow youth sports to become even more entrenched as big business.  Otherwise, we risk losing the spirit of the game and denying countless children the opportunity to learn the life lessons that only sports can teach.