Is private equity a good partner with youth sports programs?

It’s no surprise youth sports, particularly travel team sports, are increasing in cost, denying many children the opportunities to participate.

Private equity is increasingly investing in youth sports. This increased focus on youth sports has highlighted foundational issues, however, according to Cole Van Nice, co-founder of Elysian Park Ventures, the capital firm of the Los Angeles Dodgers ownership group. He said there has been a lot of push back by families because of the costs to play travel sports.

Linda Flanagan, author of Take Back the Game: How Money and Mania Are Ruining Kids’ Sports — and Why it Matters, said in The Aspen Institute’s Project Play study it’s difficult to see how private equity taking a larger share of youth sports organizations will help children and their families.

“Their purpose is to make a profit, it’s not to develop children,” she said.

Tom Farry, executive director of the Aspen Institute Sports & Society Program, said private equity could be the best or worst thing that happens to youth sports.

“…will private equity do the easy thing and just try to wring more money out of an increasingly smaller pool of families with the income to stay in the youth sports arms race?” he said.

— The Paralympics is one event spurring support by states for prosthetics and orthotics, which allows more people to play sports. Many disabled persons are unable to afford care that helps them be physically active. “So Every BODY Can Move” is helping to change this inequity by urging advocates to support local and state legislative initiatives to create insurance coverage for recreational prosthetic and orthotic care.

Its goal is to enact laws in 28 states by the 2028 Paralympics in Los Angeles. Eight states already have passed legislation.

Maryland’s law notes insurers are required to cover all devices deemed medically necessary by a doctor for daily living activities, job-related activities and/or physical activities such as running, biking, swimming and strength training. Insurers also are required to cover replacement devices and components.

Testimonials relate the costs are minimal — between a penny and 37 cents a month for premiums — and could lower other costs because of improved patient mental and physical health.

— Since colleges have enacted NIL moneys, the trend is for high school athletes to also monetize their name, image and likeness, but the practice can offer opportunities and risks. In Philadelphia, Temple University and lawmakers have joined to help educate families by creating a hotline for local athletes’ families to call for free legal advice on potential NIL deals. Temple law students screen the calls.

The NIL Youth Protection Bill was passed by the Philadelphia City Council last year. The mayor declined to sign the bill, but a council member has reintroduced the legislation. If approved, the bill would establish provisions related to education and counseling for Philadelphia youth and families with annual incomes of less than $150,000.

All of these initiatives hope to improve the lessening trend of physical activity among youth. The Physical Activity Alliance’s latest U.S. Report Card on Physical Activity for Children and Youth showed another year of C and D grades. Overall, activity received a D- grade. Today, only 20 to 28 percent of youth ages 6 through 17 meet the 60 minutes of daily activity guideline, which hasn’t increased in the last 10 years.

In addition, organization sports received a C-, active transportation received a D-, the same as earlier primarily because the percentage of children who walk or bike to school (10 percent) has not increased in the past decade. Sedentary behavior earned a D because of time spent on screens, schools received a D because high school P.E. participation has not increased over a decade, and too few secondary schools implement a Comprehensive School Physical Activity Program.

Finally, community and built environment received a C+, up slightly from a C, as 76 percent of youth live in a neighborhood with sidewalks or walking paths.

Simply, a C means the U.S. is succeeding with just half of children, the D means there’s success with less than half (20-39 percent).

According to Trust for Public Land, $11.2 billion was invested in city parks across the 100 most populous U.S. cities in 2023. Its research found that civic and business leaders are investing in parks and open spaces because of economic challenges — “City leaders are seeking opportunities to grow their tax base and retain and attract more businesses and residents.”

Here is your homework for the future. Encourage your city leaders to invest in youth sports opportunities and safety measures. These initiatives will benefit the entire community.

Nancy Justis is a partner with Justis Creative Communications and the founder of Iowa Youth Sports Initiative. Contact her at najustis120150@gmail.com