Congressman Pat Ryan introduces ‘Let Kids Play’ act aimed at removing private equity out of youth sports

Congressman Pat Ryan (D-NY), who represents New York’s 18th Congressional district, joined Representatives Chris Deluzio (D-PA), Angie Craig (D-MN), and Pramila Jayapal (D-WA) in sponsoring the “Let Kids Play Act.” The bicameral bill – led by Senator Chris Murphy (D-CT) in the Senate – will seeks to ban 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.

According to a statement released by Ryan’s office, youth sports have become increasingly expensive in the past decade. The Congressman claims youth sports is 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 replaced local and community-based sports programs, monetizing everything from leagues to teams to venues to tournament circuits, the statement said.

Private equity’s growing control of the competition has caused families to pay higher prices and junk fees for their kids to participate in youth sports, Ryan’s office said. According to the press statement, in just a few years, the cost of participating in youth sports has risen by 46 percent, and the average cost for a year of club sports exceeds $5,000. 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.

“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 Congressman 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 would designate private equity firms as vulture investors and ban them from youth sports, unless they can prove they’ve never used vulture practices. Banned investors must sell their ownership stakes and management rights in youth sports within two years.

The bill would require 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.

The Let Kids Play Act would hold private equity vulture investors responsible for any debts, legal judgments, or law violations, including child safety and labor infractions, that occur while they are in charge.

The bill would use any penalites paid or money taken from these private equity firms to create a dedicated fund to provide scholarships, reduce costs for families, and keep local fields open for free community use.

States and parents would have 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, Groundwork Action, Sports Fans Coalition, Open Markets Institute, and the Americans for Tax Fairness.

Katie Van Dyck, Senior Legal Fellow, American Economic Liberties Project, said, “Private equity has transformed youth sports from a public good into a profit center, with children and families paying the price. 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.”