Less than 2% of NCAA athletes are drafted into a professional sport, according to NCAA data.
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A bipartisan committee on Capitol Hill scrutinized the role of private equity in youth sports on Tuesday, a potential sign that Congress could be inching closer to intervening.
The hearing, titled “Field of Fees: Private Equity’s Role in the Commercialization of American Youth Sports,” comes as Wall Street continues to expand its presence in youth sports. Lawmakers from both political parties expressed alarm at the trend, while appearing to look for solutions to avoid price hikes to youth participation in sports.
“In some markets, consolidation is driving up costs for families while limiting access to more affordable, community-based options,” said Rep. Kevin Kiley, chair of the House Early Childhood, Elementary, and Secondary Education subcommittee. “The consequences are clear: A widening participation gap.”
“The simple reality is that too many children are being priced out. It’s not that they lack talent or determination; it’s that their families simply cannot afford the rising costs,” Kiley, an independent from California who caucuses with Republicans, said.
Kiley chaired the hearing three weeks after former New York Giants quarterback Eli Manning’s private equity firm Brand Velocity Group announced it would acquire RCX Sports, the company that manages the licenses of the official youth sports programs for professional sports leagues.
Rep. Suzanne Bonamici, D-Ore., also 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 suggested consideration of increased transparency around fees and business practices, robust antitrust enforcement and increased public investment in community recreation and school-based sports programs to help fill the gap.
Rep. Burgess Owens, R-Utah, a former professional football player, expressed concern that private equity investment in youth sports could lead to a focus on investor return rather than youth opportunity.
“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.”
Owens said some investors are “doing it the right way,” but said Congress needs to ensure “bad actors” are kept out.
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