Key Takeaways
- 3Step Sports, which operates nearly 1,500 youth sports events and leagues serving over 2 million athletes, has hired Goldman Sachs to explore a potential sale or capital raise
- The company currently generates $40 million in EBITDA and has acquired multiple operators including EDP Soccer, Prospect Athletics, and First Scout since 2019
- Average household spending on youth sports increased 46% from 2019 to 2024, reaching over $1,000 annually per family
- The broader youth sports league and club segment represents between $15 billion and $19 billion in annual consumer spending, according to Boston Consulting Group
- Multiple recent transactions signal continued dealmaking activity, including Versant’s exploration of a SportsEngine sale and Accel-KKR’s 2024 investment in LeagueApps
via: Sportico
Market Leader Enters Sales Process
Woburn, Massachusetts-based 3Step Sports has engaged Goldman Sachs to evaluate strategic options, according to multiple sources familiar with the matter. The company operates as the largest youth sports club operator in the United States, managing nearly 1,500 events and sports leagues with participation from more than 2 million athletes.
The potential transaction would represent one of the largest deals in the youth sports infrastructure space. 3Step’s current operations extend beyond event management to include athlete recruiting data services, video production capabilities, and ownership of select sports venues. The company generates approximately $40 million in EBITDA, positioning it as a substantial platform within the fragmented youth sports market.
Midsize private equity firm Juggernaut Capital acquired a stake in 3Step in 2019, providing the foundation for an aggressive consolidation strategy over the past several years.
Consolidation Strategy Builds Scale
Since Juggernaut’s initial investment, 3Step has executed multiple acquisitions to expand its geographic footprint and service offerings. The company acquired EDP Soccer, a regional club operator, along with Prospect Athletics, a baseball and softball club network serving families across multiple markets. 3Step also purchased First Scout, which specializes in recruitment video production for athletes seeking college opportunities.
This consolidation approach reflects broader industry dynamics, where operators seek scale advantages in marketing, technology infrastructure, and facility utilization. The fragmented nature of youth sports, with thousands of independent clubs and organizations operating regionally, creates ongoing opportunities for platforms like 3Step to build market density.
Household Spending Drives Industry Growth
Youth sports participation and spending patterns have shifted significantly in recent years. Research from The Aspen Institute shows average annual household spending on youth sports rose from approximately $693 in 2019 to over $1,000 in 2024, a 46% increase over five years. Total annual parental spending across the United States now reaches an estimated $40 billion.
A 2024 white paper prepared by Boston Consulting Group breaks down this spending, estimating that consumer expenditures specifically on youth sports leagues and club operators like 3Step or competitor Unrivaled Sports fall between $15 billion and $19 billion annually. This segment includes registration fees, tournament costs, and related services but excludes adjacent spending categories such as equipment, travel, and private coaching.
Participation levels have grown through and since the pandemic, contributing to increased spending alongside rising costs per athlete for specialized training, travel tournaments, and year-round programming.
Active Transaction Market for Youth Sports Assets
The 3Step process arrives during a period of heightened dealmaking activity across youth sports infrastructure. Versant, the recent Comcast spinoff, has explored a sale of SportsEngine, a leading software provider for youth sports organizations. Dick’s Sporting Goods acquired GameChanger, a widely adopted stats and streaming platform for Little League and other youth sports, in 2016. More recently, private equity firm Accel-KKR took a significant stake in LeagueApps, a youth sports management platform, in 2024.
These transactions reflect investor interest in platforms that can aggregate fragmented demand, build technology infrastructure, and capture recurring revenue from families committed to youth sports participation. The combination of growing household spending, expanding participation, and the need for operational scale continues to attract both strategic buyers and financial sponsors to the sector.
Evaluating Strategic Options in a Growing Market
The 3Step sales exploration positions the company to capitalize on favorable market conditions and strong investor appetite for youth sports assets. With established operations across multiple sports, a substantial athlete base, and proven acquisition capabilities, the platform represents a scaled entry point for potential buyers seeking exposure to continued growth in youth sports spending.
Whether the process results in a full sale, recapitalization, or continued independent growth, 3Step’s position as the largest U.S. youth sports club operator gives it multiple strategic paths forward in an industry experiencing both consolidation and expansion.
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