Murphy, Deluzio Introduce Bicameral Bill to Kick Private Equity Out of Kids' Sports and Stop the Ripoffs

WASHINGTON - U.S. Senator Chris Murphy (D-Conn.) and U.S. Representative Chris Deluzio (D-Pa.-17) on Wednesday introduced the Let Kids Play Act, a bicameral bill to stop Wall Street from pricing kids out of sports by banning private equity firms from youth sports, shutting down the vulture practices they use to jack up costs, and getting money back to the families who have been ripped off. The bill is co-led by U.S. Senator Cory Booker (D-N.J.) in the Senate. The Monopoly Busters Caucus, co-chaired by Rep. Deluzio, along with U.S. Representative Pramila Jayapal (D-Wash.-07), U.S. Representative Pat Ryan (D-N.Y.-18), and Angie Craig (D-Minn.-02) co-led the legislation in the House.

Over the last decade, youth sports have become prohibitively expensive. What was once an affordable, community-based tradition to give kids a chance to have fun and challenge themselves, has morphed into a $40 billion industry dominated by private equity, with the singular goal of extracting as much profit as possible from families. Private equity firms have monetized and taken ownership of every layer of youth sports, including leagues, teams, venues, practice facilities, tournament circuits, uniforms, streaming services, hotels, and merchandise sales, boxing out local organizations that are invested in their community.

Once they've taken control of the competition, private equity wields their market power ruthlessly, sticking ordinary families with substantially higher prices, endless junk fees, and mandatory multi-year contracts. In just a few years, the cost of participating in youth sports has risen by 46 percent. Families routinely go into debt to keep their kids in sports, with the average cost exceeding $5,000 a year. As a result, millions of lower-income families have been locked out of the youth sports experience entirely, participating at half the rate of wealthier families.

"As a hockey dad, I've seen how viciously these private equity companies rip families off," said Senator Murphy. "Sports are one of the increasingly few places kids can find real community and learn core values, like teamwork and discipline, that last a lifetime. It is shameful to deny that opportunity to millions of kids just so some greedy Wall Street executives can boost their bottom line. We are getting these profit-obsessed corporations out of kids' sports for good."

"Sports should be a sacred part of childhood," said Rep. Deluzio. "Instead, big money vultures have turned youth sports into a luxury item. That must end. I'm proud to lead the Let Kids Play Act to ban private equity from youth sports and keep this part of the American Dream alive for the next generation of kids."

"The cost of youth sports has gotten out of control. Parents are getting squeezed, kids are being shut out, and big businesses are cashing in," said Senator Booker. "Playing sports as a kid changed the trajectory of my life, and I know it's done the same for millions of others. We will all lose something important to society and our culture if we allow youth sports to become a luxury good only available to the wealthiest."

"In nearly every part of American life, giant corporations, Wall Street investors, greedy billionaires, and other special interests are squeezing every last dollar they can out of working families," said Rep. Jayapal. "And like in so many other industries, wealthy investors have found a way to take the fun out of kids' sports. The Let Kids Play Act puts a stop to this nickel-and-diming from private equity and corporate investors because no child should miss out on playing sports because their parents cannot afford these ridiculous fees."

"As a mom, I know how important youth sports are for our kids, but thanks to private equity firms monopolizing sports leagues and jacking up prices for parents, sports are becoming less and less accessible to everyday folks," said Rep. Craig. "Limiting kids' access to activities that help them stay active and build lifelong skills, while putting the squeeze on working parents who are already struggling with the sky-high cost of supporting a family is unacceptable and wrong. That's why I'm proud to be a part of the effort to protect youth sports and hold these massive companies accountable for exploiting working families and using our kids as pawns to increase their bottom lines."

"Team sports are supposed to be the first place our kids learn teamwork, discipline, and community. Instead, it's become a cash grab for Wall Street investors to make another buck while our kids miss out on this fundamental part of American childhood," said Rep. Pat Ryan. "It's outrageous. Parents are already getting crushed by costs everywhere they turn, and now corporate investors are coming after one of the most important parts of childhood, too. Enough. The Let Kids Play Act cracks down on these abusive practices, lowers costs for families, forces the bad actors to pay them back, and puts the focus back where it belongs: on kids getting the chance to play."

The Let Kids Play Act stops Wall Street from pricing our kids out of sports by banning both private equity vulture investors and the vulture practices they use, and establishes strong enforcement tools to hold private equity accountable for the damage they cause by requiring:

• Mandatory exit from youth sports: Private equity firms are automatically designated as vulture investors and banned from youth sports -- leagues, facilities, tournaments, and player platforms -- unless they prove they have never used vulture practices. Banned investors must sell their ownership stakes and management rights in youth sports within two years.
• Refunds to families: This bill requires vulture investors to provide full refunds for any junk fees collected through vulture practices, cancels any predatory contracts, and wipes out any outstanding debts, interest, or late fees that were imposed by the private equity firms.
• Liability for debts and safety violations: Private equity vulture investors are held personally and financially responsible for any debts, legal judgments, or law violations, including child safety and labor infractions, that occur while they are in charge.
• Creation of Youth Sports Fund: Any penalties paid or money taken from these private equity firms is placed into a dedicated fund to provide scholarships, reduce costs for families, and keep local fields open for free community use.
• Rights for communities and families be respected: This bill gives states and parents legal standing to sue private equity firms in youth sports, stop their vulture practices, and receive compensation for any financial losses or harm they have caused.

The bill is endorsed by the American Economic Liberties Project (AELP), Groundwork Action, Sports Fans Coalition, Open Markets Institute, and the Americans for Tax Fairness (ATF).

"No kid should have to quit a sport because private equity has made it too expensive," said Lina Khan, former FTC Chair. "It's great to see this bill take on the vulture investors preying on families."

"Private equity has transformed youth sports from a public good into a profit center, with children and families paying the price," said Katie Van Dyck, Senior Legal Fellow, American Economic Liberties Project. "The Let Kids Play Act goes after their vulture practices with conviction - banning the consolidation, debt loading, and asset stripping that have hollowed out local clubs; eliminating the liability shields that protect the worst actors while leaving communities in the dust; and giving public and private enforcers the tools to hold them accountable. Kids and families deserve to enjoy sports without emptying their bank accounts. This bill makes that possible."

"For years, private equity firms have been buying up youth sports leagues and turning one of the most important parts of childhood into a cash extraction scheme," said Alex Jacquez, Chief of Policy and Advocacy, Groundwork Action. Firms are piling on junk fees, locking families into predatory contracts, and mandating expensive travel programs, all so Wall Street investors can squeeze more profits out of kids and parents. The result is that millions of children are being priced out of sports that used to be a basic part of growing up. The Let Kids Play Act would ban these vulture tactics outright and kick private equity out of youth sports, putting families, kids, and communities back at the center of the game."

"There's no bigger fan than a parent. Watching your kid compete is the purest experience sports has to offer," said Brian Hess, Executive Director of Sports Fans Coalition. "But private equity is exploiting that love. Buying up local leagues, forcing families into pay-to-play schemes, preventing kids from playing in other tournaments, and harvesting children's biometric data for profit doesn't just drain working families' bank accounts - it sucks the soul out of youth sports. The Let Kids Play Act attacks this problem at the root by banning these predatory practices and forcing vulture investors out of youth sports for good. Sports Fans Coalition proudly endorses this legislation and commends Sen. Murphy and Rep. Deluzio for standing up for the most passionate fans in America - the parents on those sidelines."

"Private equity firms threaten to destroy kids' sports the way they are destroying so many other industries," said Brendan Ballou, author of Plunder: Private Equity's Plan to Pillage America. "This is a problem that will get worse unless Congress steps in. If you want to make children's sports affordable, support this bill."

"Private equity firms have shown, again and again, what happens when short-term investors move into community institutions: costs go up, quality and access go down, and families are left paying the price," said Audrey Stienon of the Open Markets Institute. "This bill recognizes that youth sports should be about kids and communities, not financial extraction, and it could help establish a broader standard for identifying and pushing out the kinds of investors whose business model depends on harming the people they're supposed to serve."

"For decades, private equity firms have used tax loopholes like carried interest to avoid paying billions in taxes, while using money taken from taxpayers to buy up companies and raise prices for millions of Americans already struggling in an unaffordable economy," said David Kass, executive director of Americans for Tax Fairness. "Let Kids Play Act would ensure that private equity firms already taking from taxpayers cannot price kids out of their communities' sports programs. These programs are essential to our children's and community development. No kid should be shut out."

A one-pager of the bill is available here. Full bill text is available here.