Be warned: Private equity is about to increase the ruining of youth sports

[Anonymous]

This video gives insight into how private investors are viewing sports purely as a means to ensure returns on investment and not a mechanism to develop American youth

There are so many issues with youth sports that will worsen over the next decade..

https://youtu.be/pNrYZ0wOcSQ?si=UtL1IN_wgG0lHson&t=246

"This is not a social impact fund. This is about commercial returns for our investors."

[Anonymous]

I regularly get consulting emails from an equity research company on topics in my architecture industry such as made countertops and contract management software.
It seems to me if a business selling this stuff needs investors, business must be pretty bad.

I have a friend at JP Morgan who believes that plumbing and electrical companies will get bought by investors. So I guess this is a new form of trickle down economics to find the lowest subcontractor so numbers look profitable.

China is at least doing something right by restricting property sales when they say homes are for living, not for speculation.

[Anonymous]

Things never go well for an industry when PE enters it. PE is the devil.

[Anonymous]

There's an entire newsletter now dedicated to the business of youth sports that covers this stuff in-depth. Since I run social media for a sports league I get the newsletter's ads all the time.

It's a huge business.

[Anonymous]

PE isn’t venture capital. They don’t create new markets or businesses, but rather buy up existing businesses and then wring efficiencies (and use lots of debt).

As an example in youth baseball…PE didn’t create the Perfect Game organization or PBR…those organizations were created organically and I would imagine many parents dislike what they have done to youth baseball.

I could easily see PE saying why do those two organizations exist separately. Let’s buy them both, get rid of duplicate operations and now completely dominate youth baseball.

Now…who they sell this company to is a question…maybe they say now that we conquered youth baseball, let’s roll up LAX, soccer, etc (or they sell to a group looking to do that).

[Anonymous]

I heard PE already had their hands in lacrosse, which is why they charge big bucks to park in the middle of nowhere at tourneys

[Anonymous]

Anonymous wrote:PE isn’t venture capital. They don’t create new markets or businesses, but rather buy up existing businesses and then wring efficiencies (and use lots of debt).

As an example in youth baseball…PE didn’t create the Perfect Game organization or PBR…those organizations were created organically and I would imagine many parents dislike what they have done to youth baseball.

I could easily see PE saying why do those two organizations exist separately. Let’s buy them both, get rid of duplicate operations and now completely dominate youth baseball.

Now…who they sell this company to is a question…maybe they say now that we conquered youth baseball, let’s roll up LAX, soccer, etc (or they sell to a group looking to do that).

this is like 5 years too late. PE is heavily involved in youth sports. For example, PE companies back most of the largest lax travel programs. PE basically owns TRUE and 3D (or whatever they are called). Hogan sold out a long time ago and just has his name on the product. Same for AAU basketball and I'd guess it is the same for soccer.

[Anonymous]

Anonymous wrote:Things never go well for an industry when PE enters it. PE is the devil.

This is true. PE turns everything it touches into crap.

[Anonymous]

they are buying the dance competitions too....

[Anonymous]

From the gymnastics world:

PE has started buying gymnastics gyms, eliminating competitive programs, squeezing as much money as possible out of recreational classes and ninja classes, and closing them. There are elite/national-level athletes who have had to change gyms or even move states because of these closures.

My daughter trains at a facility owned by a venture capitalist. They seem very invested in it for personal reasons but there’s a cloud hanging over things because who knows how long this investment will keep his interest.

[Anonymous]

Anonymous wrote:they are buying the dance competitions too....

Those were always scammy

[Anonymous]

Youth sports are already ruined. Too many adults too invested, literally and figuratively. Too much specialization too early. Too much pressure on kids. Too much money.

[Anonymous]

Can we invent PE that buys up other PE and rips them a new one by driving their useless firms into the ground? Fire all of their staff and replace PE dorks with AI.

[Anonymous]

Anonymous wrote:Youth sports are already ruined. Too many adults too invested, literally and figuratively. Too much specialization too early. Too much pressure on kids. Too much money.

Yep, this is just the nail in the coffin.

[Anonymous]

Anonymous wrote:From the gymnastics world:

PE has started buying gymnastics gyms, eliminating competitive programs, squeezing as much money as possible out of recreational classes and ninja classes, and closing them. There are elite/national-level athletes who have had to change gyms or even move states because of these closures.

My daughter trains at a facility owned by a venture capitalist. They seem very invested in it for personal reasons but there’s a cloud hanging over things because who knows how long this investment will keep his interest.

I heard the other day that Bull City in Durham is moving the vast majority of their team practices to daytime hours and forcing the girls to homeschool. All presumably to add more rec and ninja classes. Families are leaving for other gyms. It's the exact same playbook as what they did at First in Flight near Charlotte. Eventually the teams were cut completely, and then FiF later closed. Interestingly enough, not only were FiF and Bull City owned by the same PE group, FiF's upper level coach went to Bull City and some of their top gymnasts followed. The families who followed must be having deja vu.