Opening: The hearing, titled "Field of Fees: Private Equity's Role in the Commercialization of American Youth Sports," reflects Wall Street's growing footprint in youth sports. Lawmakers from both parties voiced concerns about rising costs and sought ways to prevent pricing families out of participation.
The subcommittee on Early Childhood, Elementary and Secondary Education held a hearing to investigate the impact of private-equity ownership on youth sports. Subcommittee chair Rep. Kevin Kiley (independent from California, caucuses with Republicans) led the session. He pointed to market consolidation as a key problem. "In some markets, consolidation is driving up costs for families while limiting access to more affordable, community-based options," Kiley said. "The consequences are clear: A widening participation gap."
Get your free investing masterclass bonus when you join Market Briefs, our free daily newsletter
Rep. Burgess Owens (Republican, Utah), a former professional football player, voiced even stronger concerns. "Investment is important, but it's when the mission is our kids, not investors," Owens said. "We're seeing too much of this. We're going to lose the soul of our nation if we don't get this right."
Rep. Suzanne Bonamici (Democrat, Oregon) expressed concern about the rising investment. "Youth sports are simply the latest example of how unchecked market power can make everyday opportunities less accessible for families," Bonamici said. She proposed measures such as greater fee transparency, stronger antitrust enforcement, and more public funding for community and school sports programs.
The session took place three weeks after Eli Manning's firm, Brand Velocity Group, revealed plans to purchase RCX Sports, which oversees licenses for pro leagues' official youth sports programs. Other notable private equity acquisitions have occurred in recent years. In 2023, BPEA EQT (then a PE firm) bought IMG Academy for $1.25 billion. The following year, KKR acquired Varsity Brands, an apparel firm, for $4.75 billion.
Bryan Finnerty, founder of High Velocity Sports Group, testified at the hearing and offered a balanced view. Finnerty stated that private equity funding allowed him to establish a "community sports center focused first and foremost on serving local families." "I've seen responsible investment strengthen communities by expanding access, improving facilities and creating opportunities for children," Finnerty said. "I've also seen business models that prioritize financial extraction over child development." He added that the fundamental issue is not "whether private capital belongs in youth sports" but rather "whether it remains accountable to the mission of youth sports." NCAA data shows fewer than 2% of college athletes get drafted into professional leagues.
Subscribe to Market Briefs, our free daily newsletter, and claim your bonus investing masterclass
