Private Equity Fund Investing in Youth Sports Leagues
Billionaire Former Blackstone Executive Acquires Sports Facilities
Expanding Youth Sports Commercialization Across the U.S.
"The Era of Parents Coaching Without a Director Is Over"
Criticism That It Pushes Out Low-Income Families
A private equity fund created by a U.S. billionaire investor has begun making serious investments in the youth sports sector. As youth sports have emerged as a guaranteed hit in the United States, private equity funds seeking high returns are acquiring youth baseball facilities and integrating and expanding related businesses.
Bloomberg recently reported that "private equity funds have entered youth sports," highlighting the changing atmosphere of the U.S. youth sports industry due to the emergence of private equity funds. The private equity fund mentioned in the article is 'Unrivaled Sports,' established earlier this year. It has attracted attention as it was founded by David Bleicher, who has over 30 years of experience at Blackstone, the top private equity firm, and Josh Harris, co-founder of Apollo Global Management, another leading Wall Street asset management company. Both are sports enthusiasts who hold stakes in major teams such as Major League Baseball (MLB) and the National Basketball Association (NBA).
In 2021, the two billionaires purchased an 80% stake in the baseball stadium and resort 'Cooperstown All-Star Village (CASV)' located in Oneonta, New York, for $116 million (approximately 155.3 billion KRW). CASV is a place where thousands of youth under 12 from across the U.S. gather every summer to play baseball games. Since each player pays about $1,300 in participation fees and parents also attend, CASV’s food and beverage sales surge during this period, and nearby hotel accommodation costs skyrocket.
The two investors, savvy in investment, are interpreted to have made a proactive investment in the youth sports sector by seeing the future profitability of CASV. Additionally, Bleicher’s five children?two sons and three daughters?are all very interested in sports, and watching their athletic activities up close also seems to have sparked his interest in the youth sports business.
Afterward, the two billionaires established 'Unrivaled Sports' to actively invest in and expand youth sports businesses. Unrivaled Sports describes itself on its website as "a place where legends and lifelong memories are made." This private equity fund owns 15 youth sports facilities nationwide, including CASV, where approximately 635,000 players compete annually and 1.4 million spectators visit. Unrivaled Sports aims to expand its business by creating an environment where people come to play sports as if visiting a theme park, similar to how Disney attracts visitors to its amusement parks.
Jeremy Goldberg, president of LeagueApps, a youth sports management platform operator, said that private equity funds are entering an industry that was previously managed by small operators and are integrating it nationwide. He stated, "The era when kids played sports mostly without coaches is gone." According to him, even teams with six-year-old children have paid coaches, and there are intense schedules with no breaks on holidays and competitive selection processes.
However, there are concerns that this trend could negatively affect youth who used to enjoy sports simply as play. The variety of sports experiences for individual youths may decrease, and it may become harder to find enjoyment in sports. In particular, it has been pointed out that youths from low-income or single-parent families face more challenging environments for participating in sports.
Bloomberg reported, "In theory, it prepares kids to play at college-level or higher," but "in reality, youth sports are becoming increasingly costly, exclusive, and pressure-filled."
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