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Sports General Discussion
Reply to "Be warned: Private equity is about to increase the ruining of youth sports"
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[quote=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).[/quote]
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