A House subcommittee met Tuesday to discuss private equity’s growing footprint in youth sports, as lawmakers weigh whether federal action is needed as participation costs climb. 

The session focused on how investor-backed rollups and fee structures could reshape access to youth leagues and community programs, CNBC reported.

"In some markets, consolidation is driving up costs for families while limiting access to more affordable, community-based options. The consequences are clear: A widening participation gap," said Rep. Kevin Kiley (R-Calif.), who led the hearing as chair of the House Early Childhood, Elementary, and Secondary Education subcommittee.

"Too many children are being priced out. It’s not that they lack talent or determination; it’s that their families simply cannot afford the rising costs," Kiley added.

Rep. Suzanne Bonamici (D-Ore.) said youth sports reflect a broader problem of private equity firms making everyday activities harder to afford for families. She floated ideas including clearer disclosure around fees and business practices, tougher antitrust efforts, and more public funding for local recreation and school sports programs.

Rep. Burgess Owens (R-Utah), a former professional football player, warned that investor priorities could overtake what youth sports are supposed to deliver for children. 

"Investment is important, but it’s when the mission is our kids, not investors. We’re seeing too much of this. We’re going to lose the soul of our nation if we don’t get this right," Owens said.

He added that some investors are "doing it the right way," but urged safeguards to keep "bad actors" out of the space. 

Private equity investments in amateur sports reached $2.11 billion in the first five months of 2026, already more than four times the $550 million recorded for all of 2025, a recent report from S&P Global Market Intelligence stated.

The U.S. youth sports market is estimated at roughly $40 billion annually and continues to grow at 8% to 10% per year, according to legal advisory analysis from White & Case.

“Recent acquisitions are focused less on traditional club ownership and more on the infrastructure behind youth sports,” said Luca Blasi, head of private markets valuations at S&P Global Market Intelligence, in an interview with Benzinga. He pointed to technology platforms, data systems and multimedia rights businesses as the primary drivers of new investment interest.

Companies operating in the youth sports ecosystem are also attracting large funding rounds. 

Teamworks Innovations raised $285 million in a Series F round in June 2025, led by Dragoneer Investment Group, followed by an additional $75.8 million Series G round in early 2026 with participation from AllianceBernstein Holding and HgCapital. 

Meanwhile, Unrivaled Sports secured $120 million in May 2025 from investors including DSG Ventures, Dynasty Equity Partners Management and TCG Capital Management, S&P reported.

Blasi added that valuation dynamics in the sector are increasingly being driven by proprietary data and platform effects rather than traditional financial metrics. 

“Metrics are transaction-specific, but proprietary data and established platforms are driving higher transaction prices,” he said, noting that investors are pricing in potential synergies and technology-enabled scale rather than traditional financial metrics.

Photo: Shutterstock/Kim Reinick