Definitely go with a rec team, low skill/low competition. Just get him playing and learning the game without any real emphasis on winning. At 10, they should be focusing on skills development and team work- practice more than games. At that age, basic concepts such as solid man defense and pick-and-roll offense should trump the final score.
If he really wants to get better- the ONE skill that is most important is dribbling the ball. Strong hand and off hand dribbling witout looking at the ball. He doesn't even need to do it outside, let him do it in the basement while watching Spongebob on a rainy day. Shooting hoops is important but if he's got bad form (I'm betting he does) he'll just be practicing bad form until corrected.
So- find a rec league, buy him a quality ball, inflate it properly, and encourage him to practice dribbling.
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