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

WASHINGTON, D.C. - Today, U.S. Senator Cory Booker (D-NJ), U.S. Senator Chris Murphy (D-CT), and U.S. Representative Chris Deluzio (D-PA-17) introduced the Let Kids Play Act, a bicameral bill aimed at stopping Wall Street from pricing kids out of youth sports by banning private equity firms from the space, curbing predatory practices that drive up costs, and returning money to families who have been overcharged. The legislation is co-sponsored in the House by U.S. Representatives Pramila Jayapal (D-WA-07), Pat Ryan (D-NY-18), and Angie Craig (D-MN-02).

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.

"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."

"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 Representative 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."

"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 Representative 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 Representative 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 Representative 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.

Read the full text of the bill here.