Field of Fees: Private Equity’s Role in the Commercialization of American Youth Sports

Education and Workforce MarkupsHouse Education and Workforce Subcommittee on Early Childhood, Elementary, and Secondary Education · 2026-06-30 · 119th Congress
The Subcommittee on Early Childhood, Elementary, and Secondary Education held this hearing to examine how private equity investment and market consolidation are affecting the cost, accessibility, and quality of youth sports programs across the country. Begins at 0:08:45
Transcript
Highlights

Title

Private equity consolidation and rising costs in youth sports

Purpose

The Subcommittee on Early Childhood, Elementary, and Secondary Education held this hearing to examine how private equity investment and market consolidation are affecting the cost, accessibility, and quality of youth sports programs across the country. Members heard testimony from an author, a nonprofit hockey administrator, an antitrust attorney, and a private facility founder on both harmful practices—such as vertical integration, mandatory "state of play" travel requirements, and predatory fees—and examples of responsible private investment expanding access. The hearing followed a December hearing on the same topic and comes amid reporting on Blackbear Sports Group's acquisition of ice rinks nationwide. Begins at0:08:45

Who spoke

Chairman Kylie (R)0:08:45: Opened by noting youth sports participation has rebounded to 58% but average family spending on a child's primary sport rose 46% between 2019 and 20240:09:34; cited a widening participation gap between low- and high-income households, from 13.6 to 20.2 percentage points since 20120:10:49; later questioned Flanagan on balancing broad access with competitive opportunity0:37:43 and Finnerty on aligning private investment incentives0:40:16.

Ranking Member Bonamici (D-OR)0:13:18: Said the average family spends more than $1,500 a year per child on sports0:14:14; linked rising costs to private equity consolidation and criticized proposed FY2027 cuts of $2.3 billion to Education and $1.1 billion to parks/recreation0:16:29; questioned Van Dyck on antitrust enforcement gaps0:42:33 and deceptive scholarship promises0:45:02; delivered closing statement citing Blackbear Sports as an example of exploitative practices1:38:41.

Linda Flanagan, author0:19:29: Testified that youth sports have shifted from a cheap, child-driven participation model to a costly, adult-managed performance model0:20:17; said low-income participation dropped from 35% to 24.9% since 20120:22:20; recommended requiring youth organizations to register with US Safe Sport0:23:14; praised Norway's low-cost, non-competitive multisport model where 93% of the population plays0:39:37.

Matt Kakabeeke, Executive Director, Kalamazoo Optimist Hockey Association0:24:05: Described Wings West rink's mechanical failure and its October 7, 2025 acquisition by Blackbear Sports Group0:24:48; said Blackbear demanded his nonprofit abandon its name, logo, and local sponsor branding0:25:36; testified his organization was evicted from Wings West on March 3, 20260:26:44; called Blackbear's impact "predatory"1:11:17.

Katherine Van Dyck, Senior Fellow, American Economic Liberties Project0:27:36: Said the US Olympic and Paralympic Committee spends under 1% of its NBC broadcast revenue on youth sports0:28:34; described a "flywheel" model in which firms like Varsity and Three-Step Sports monopolize cheerleading and soccer tournaments0:29:29; said only 2% of high school athletes get college scholarships despite marketing promises0:30:59; called for banning vertical integration and junk fees via the Let Kids Play Act0:31:24; testified DOJ has filed only one antitrust suit under the current administration0:43:03.

Bryan Finnerty, Founder, High Velocity Sports0:32:40: Said more than 80% of his facility's users participate in local recreation leagues and it has provided thousands of scholarships0:34:05; argued capital's success should be judged by opportunities created for children, not investor returns0:35:31; described partnering with Canton, Michigan to find efficiencies and reinvest savings into access1:22:20.

Rep. Rulli (R-OH)0:47:48: Cited Blackbear Sports Group's roughly $1.2 million investment in Youngstown's Cavelli Center and its "Give Hockey a Shot" free program0:48:17; asked whether small communities could renovate facilities without private investment0:48:47.

Rep. Lee (D-PA)0:51:32: Said she'd support Republicans on antitrust enforcement if it extends beyond sports to health care and housing0:51:32; asked Van Dyck to compare youth sports consolidation to nursing home and hospital rollups0:52:24; touted co-sponsoring the Let Kids Play Act0:55:23.

Rep. Harris (R-NC)0:56:21: Cited a 2025 USA Today poll finding 73% of parents believe youth sports lost sight of fun/teamwork and 61% believe organizations prioritize profit0:57:17; noted 80% of parents support reducing travel0:58:25; asked Kakabeeke and Flanagan about community-rooted programs and multisport participation0:57:370:58:55.

Rep. Adams (D-NC)1:01:41: Asked Van Dyck what providers could enter the market absent private equity dominance1:02:30; probed fear of retaliation among families and coaches who push back on operators1:04:40; raised the need for guardrails in public-private partnerships1:05:04.

Rep. Owens (R-UT)1:06:58: Shared his own experience benefiting from youth sports1:06:58; asked Flanagan how NIL deals affect youth sports culture, citing economist Fred Hirsch's "commercialization effect"1:08:18; asked Kakabeeke to respond directly to Blackbear's claim it is "saving rinks and growing the game"1:10:59.

Rep. Manion (D-NY)1:12:34: Highlighted Tilly's Touch, a Syracuse-area organization pairing sports with tutoring for refugee children1:13:57; asked Van Dyck where profits from for-profit youth sports providers go1:15:48; asked about coaches potentially profiting from recruitment1:16:38.

Rep. Mesmer (R-IN)1:17:48: Asked Kakabeeke how corporatization affects volunteer engagement1:18:12; asked Flanagan about the Aspen Institute's finding of 1.2 million fewer volunteer coaches1:20:19 and about the "Coaching Safely" injury-prevention training program1:20:49; asked Finnerty about responsible public-private partnership models1:21:54.

Rep. Grijalva (D-AZ)1:23:41: Called youth sports a $40 billion industry, twice the size of the NFL1:24:10; criticized fees for recording a child's game1:24:39; asked Van Dyck how college-level sports trends, including a $90 million coaching contract at LSU, trickle down to youth sports1:26:04.

Rep. Moylan (D-Guam)1:28:46: Asked Finnerty how private investment can expand access in rural and low-income communities1:29:06; asked Kakabeeke what safeguards protect affordable local programs1:30:15 and how nonprofits can stay competitive1:31:22.

Rep. Scott (D-VA), Ranking Member, Full Committee1:33:10: Asked Van Dyck why vertical monopolies remain legal under antitrust law despite existing statutes1:33:39; asked how much of the $40 billion industry comes directly from family fees versus hotel/travel arrangements, citing USA Hockey's $5,000 state-of-play fine1:35:50; noted the US Olympic Committee receives zero federal funding1:38:04.

Key moments

Kakabeeke testified Blackbear Sports Group evicted the 60-year-old Kalamazoo Optimist Hockey Association from its longtime home rink, Wings West, on March 3, 2026, after demanding the nonprofit abandon its name, logo, and community branding0:24:480:26:441:11:17.

Van Dyck said Three-Step Sports controls roughly 70% of elite soccer tournaments and showcases in New Jersey and described the "flywheel" business model that traps families and locks out competitors0:29:000:29:29.

Van Dyck testified only 2% of high school athletes receive athletic scholarships despite marketing promises used to justify high costs0:30:590:45:42.

Flanagan cited a 46% rise in average family sports spending from 2019-2024 and a widening participation gap: low-income participation fell from 35% (2012) to 24.9% (2024)0:09:340:22:20.

Van Dyck said USA Hockey fines teams $5,000 for violating "state of play" hotel-booking requirements at junior tournaments1:36:43.

Rep. Scott noted the US Olympic and Paralympic Committee receives zero dollars in federal funding despite youth sports being an alleged national priority1:38:04.

Rep. Rulli highlighted Blackbear Sports Group's roughly $1.2 million investment in Youngstown, Ohio's Cavelli Center and its free "Give Hockey a Shot" program, prompting Finnerty to say private capital can enable sports access in towns that otherwise "would be no hockey"0:48:170:49:01.

Van Dyck said the US Olympic Committee spends under 1% of its NBC broadcast revenue on grassroots youth sports development0:28:34.

Bonamici cited proposed FY2027 budget cuts of $2.3 billion to the Department of Education and $1.1 billion to national parks and recreation as contributing to reduced access0:16:29.

Rep. Scott and Van Dyck discussed that of the industry's estimated $40 billion in revenue, nearly all comes from parent-paid enrollment, management, and equipment fees rather than external investment1:35:34.

Metadata

CommitteeHouse Education and Workforce Subcommittee on Early Childhood, Elementary, and Secondary Education
Chamber / CongressHouse · 119th Congress
Date2026-06-30
TypeHearing
Witnesses
Mrs. Linda Flanagan — Author
Mr. Matt Kakabeeke — Executive Director, Kalamazoo Optimist Hockey Association
Ms. Katherine Van Dyck, J.D. — Senior Fellow, American Economic Liberties
Mr. Bryan Finnerty — Founder, High Velocity Sports
Videoyoutube
Transcript272 caption blocks · 16,030 words · 1:45:04 runtime
EventCongress.gov 119418