A group of senators and representatives introduced the ‘Let Kids Play Act’ in Congress this week. The new proposal would ban private-equity investors from owning youth sports businesses in an effort to maintain the affordability and accessibility of youth sports.
According to USA Today, senator Chris Murphy of Connecticut and representative Chris Deluzio of Pennsylvania brought the bill. They cited a 46% increase in youth sports participation fees and other miscellaneous costs for families, averaging more than $5,000 per child for a single sports season.
If passed, the bill would require private equity companies to divest from youth sports over the course of two years. These companies would be required to give partial refunds to families and donate money to community-based programs.
"They see my son's hockey experience as a chance to make a massive amount of money. They are using youth sports to get rich,” said Murphy of the recently investigated Black Bear Sports Group, which is consolidating youth hockey in the Midwest and northeast, effectively creating a monopoly over programming.
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In response, a Black Bear Sports spokesperson said, “We look forward to engaging with lawmakers and sharing all the ways we are growing youth hockey at four times the national rate, providing free and low-cost programs and letting more kids play by saving and revitalizing ice rinks.”
The bill would also ban what Murphy and Deluzio coined as “vulture practices,” in which private-equity investors consolidate power over local sports programming through acquisitions and exclusive deals, driving up prices but reducing quality.
Other now common practices, including restrictive participation contracts, hidden fees and data collection are also targeted in the bill.
"Big-money vultures have turned youth sports into a luxury item," Deluzio said. "Kids should not be collateral damage in this private equity takeover of youth sports."
