Key Takeaways
- Varsity Brands settled with the Open Cheer & Dance Championship Series and Deep South Cheer just two weeks before a federal jury trial in Texas.
- The deal marks the fourth straight time Varsity has avoided a jury verdict on price-fixing claims, closing a roughly five-year litigation run.
- Plaintiffs had sought more than $10 million in damages plus injunctive relief. Settlement terms remain confidential.
- Varsity previously paid $82.5 million in 2024 and $43.5 million in 2023 to resolve separate antitrust claims.
- The U.S. All Star Federation is now the lone remaining co-defendant, with mediation on outstanding claims ongoing.
A Settlement Reached Two Weeks Before Trial
The Open Cheer & Dance Championship Series and Deep South Cheer notified the U.S. District Court for the Northern District of Texas this week that they reached a confidential settlement with Varsity Brands. The two-page motion dismisses Varsity from a case that was scheduled to reach a federal jury within two weeks.
Judge Matthew J. Kacsmaryk ordered the plaintiffs to file a stipulation of dismissal by next week. He also directed them to keep mediating their remaining claims against the U.S. All Star Federation, the Varsity-backed sanctioning body for competitive cheer and now the only co-defendant left in the case. USA Cheer and the International All Star Foundation were dismissed earlier.
The plaintiffs had been seeking more than $10 million in damages along with injunctive relief. Whether any terms become public is unclear, though details of Varsity’s prior deals eventually surfaced.
A Pattern of Avoiding the Courtroom
This is the fourth consecutive time Varsity has sidestepped a jury ruling on claims that its business practices amounted to illegal price-fixing.
In 2024, Varsity agreed to pay $82.5 million to settle a class action brought by cheer families and consumers across 35 states who indirectly paid for competitions and apparel. In 2023, Varsity and then-owner Bain Capital reached a $43.5 million deal with all-star gyms that paid registration fees for Varsity events. A separate 2023 suit from smaller competition companies was dismissed after those plaintiffs were found to have committed discovery violations.
The plaintiffs in the latest case had spent two and a half years in discovery and repeatedly signaled they intended to be the first to take Varsity before a jury. Their witness list named 26 individuals, including Varsity founder Jeff Webb, who died earlier this year after a head injury sustained while playing pickleball. His deposition from last summer was expected to be presented at trial.
From Legal Defense to Washington
With the courtroom threat resolved, Varsity shifts its attention to a new front. The company, now owned by private equity firm KKR, was named this month in bicameral congressional legislation that would automatically classify any private equity owner of youth sports facilities, associations, or teams as a “vulture investor” subject to a private right of action.
That detail places Varsity at the center of a widening policy debate over private equity’s role in youth sports.
What the Settlement Means for the Cheer Market
For operators across competitive cheer, the resolution removes near-term uncertainty about a verdict that could have reshaped sanctioning, event registration, and apparel pricing. Varsity’s market position stays intact for now.
But the scrutiny is not over. Unresolved claims against the U.S. All Star Federation and the pending legislation keep Varsity in the spotlight. The legal chapter may be closing. The regulatory one is just opening.
Source: Sportico, Daniel Libit, May 27, 2026, https://www.sportico.com/leagues/other-sports/2026/varsity-antitrust-settlement-open-championship-1234901637/
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