Chad Gruen, the 3STEP Sports CEO, started his first youth sports business at age 16 with $300 worth of soccer balls. In a recent interview with Adam Mendler, he traces the arc from that early venture to running a national youth sports organization.
Key Takeaways
- Chad Gruen launched his first venture at age 16 with a $300 investment in soccer balls
- He spent two decades building SMP Sports Group into the Midwest’s largest multi-sport youth platform before selling it to 3STEP Sports in 2022
- Gruen’s leadership framework balances granular problem-solving at “3 inches” with strategy design at “30,000 feet”
- 3STEP Sports prioritizes preserving local club brand identity over corporate branding as a growth and retention lever
- Gruen defines his role as CEO by deprioritizing his own time in favor of empowering the people around him
How the 3STEP Sports CEO Built His First Company From Scratch
“My journey began in the trunk of my car, quite literally,” Gruen told Mendler. At 16, he invested $300 in soccer balls and built what would become SMP Sports Group. Over two decades, he scaled SMP into the Midwest’s largest multi-sport youth platform. In 2022, 3STEP Sports acquired the company, and Gruen stepped into the CEO role.
The SMP acquisition is one data point in a broader pattern of consolidation across youth sports. Regional platforms with established community relationships have become targets for national operators. Gruen’s story illustrates how a founder-built organization can reach national scale through acquisition.
A People-First Operating Philosophy
Gruen is direct about what drives scale. “The key to growth and scaling your business is simple: it’s all about people,” he said. He frames his own time as the least important resource in the organization: “As CEO, I view my time as the least important in the business.”
That reflects a specific management philosophy he calls “managing at 3 inches and 30,000 feet.” In his words: “A great leader/manager needs to operate at two levels: getting to the issues at 3 inches while also stepping back to design strategy at 30,000 feet.” The approach keeps leaders close enough to daily operations to spot problems early while maintaining altitude to set long-term direction.
Why 3STEP Sports Protects Local Club Brands
One of the more notable strategic points Gruen makes involves brand hierarchy. “In the world of youth sports, the most important brand isn’t ours. It’s the logo on the athlete’s shirt,” he said.
For B2B operators and investors studying how national platforms retain families after acquisition, this is worth noting. 3STEP Sports deliberately avoids stamping its corporate identity over local clubs. Families are loyal to the club their child plays for. Preserving that local identity functions as a retention mechanism.
The company’s stated mission, “empower people through sport,” aligns with this approach. Gruen stated: “At 3STEP, our goal isn’t to win championships; it’s to empower people through sport.”
What Gruen’s Playbook Reveals About Youth Sports Consolidation
Gruen’s career offers a case study in how regional youth sports platforms get built and absorbed into national networks. He started with a $300 investment, grew through two decades of relationship-building and local credibility, and sold to a national operator in 2022.
His stated advice is practical: “You can outwork anyone” and “Remember your audience.” His legacy goal is personal rather than financial: “I don’t want my legacy to be defined by financial success or branding, but by the lives I’ve impacted.”
Source: Adammendler
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