Key Takeaways
- Chairman Kevin Kiley (R-CA) led the House Early Childhood, Elementary, and Secondary Education Subcommittee hearing with witnesses Tom Farrey (Aspen Institute), Steve Boyle (2-4-1 Sports), Katherine Van Dyck (American Economic Liberties), and John O’Sullivan (Changing the Game Project)
- Youth sports generates over $40 billion in annual revenue while participation has dropped to 55%, down from 61% pre-pandemic in 2019
- Average families now spend $1,000+ on their child’s primary sport, a 46% increase since 2019, with travel sports costing $3,000+ per year
- 70% of children quit organized sports by age 13, creating what lawmakers call “the loss of one of the most effective tools” to combat isolation and mental health challenges
- House subcommittee witnesses proposed federal sports betting tax redirection, mandatory SafeSport registration for all youth sports organizations, and antitrust measures targeting private equity consolidation
- Achieving the Healthy People 2030 goal of 63% participation by 2030 would require 3 million more kids playing sports and could save $80 billion in medical costs
The U.S. House Early Childhood, Elementary, and Secondary Education Subcommittee convened a 90-minute hearing on December 16 examining what Chairman Kevin Kiley (R-CA) characterized as a crisis in American youth sports. The hearing, titled “Benched: The Crisis in American Youth Sports and Its Cost to Our Future,” brought together four expert witnesses and multiple Congressional representatives to address declining participation rates, rising costs, and private equity’s growing footprint in the sector.
Participation Drops While Revenue Climbs
The hearing opened with stark statistics. Youth sports now generates more than $40 billion in annual revenue, yet participation has fallen to approximately 55% of kids ages 6 to 17, down from 61% in 2019 before the pandemic. The gap between revenue growth and declining participation drew particular attention from witnesses.
“That’s why we see a $40 billion industry that is growing according to investment firms, but it’s growing as participation is going down,” said Katherine Van Dyck, a senior legal fellow for the American Economics Liberties Project. “What does that tell us? It tells us that they are jacking up prices and that they are solely focused on profit.”
Seventy percent of children now quit organized sports by age 13. The average U.S. sports family spent more than $1,000 on its child’s primary sport in 2024, a 46% increase since 2019. Travel sports can cost families $3,000 or more annually.
Private Equity Under Scrutiny
Van Dyck, a former FTC attorney during the Biden administration, delivered the hearing’s most direct criticism of private equity involvement in youth sports. She called for Congress to restrict vertical integration and consolidation in the sector, specifically naming Black Bear Sports Group as an example of market concentration.
“Parks and Rec budgets were slashed, and that really did leave a void, where private equity firms came in and filled it with high cost, flashy, elite club teams,” Van Dyck testified. “And by filling that void, they were then able to continue to build their flywheel, where they gained control of the venues, and the governing bodies, and the apparel companies.”
The other three witnesses, Tom Farrey of the Aspen Institute Sports & Society Program, Steve Boyle of 2-4-1 Sports, and John O’Sullivan of the Changing the Game Project, expressed more measured concerns about private equity. Their testimony focused primarily on how gaps in traditional youth sports models created opportunities for commercial entities to fill the void.
Proposed Solutions and Policy Recommendations
Witnesses offered several concrete policy proposals. Farrey advocated for redirecting federal sports betting tax revenues to fund youth sports programs, particularly for low-income youth. He also called for improved federal data collection on youth sports to inform state and local decision-making.
One notable proposal: requiring all youth sports organizations to register with the U.S. Center for SafeSport, not just those under national governing body umbrellas. Currently only about one-third of youth sports organizations fall under NGB oversight. Farrey suggested incentivizing registration through subsidized background checks and abuse prevention training.
Robert “Bobby” Scott (D-VA), the ranking member of the House Committee on Education & Workforce, responded to Van Dyck’s testimony about budget cuts by saying: “Well, it seems to me that we gotta get Parks and Rec and the public schools back involved so those opportunities are gonna be there.”
Multiple witnesses addressed the structure of school-based sports. “One of the problems we have here is there’ll be 80 kids who try out for the boys’ basketball team,” Farrey testified. “And 15 will make it, and nine will get playing time, and we structurally push aside kids because of our traditional structure of school-based sports.”
The Scholarship Perception Gap
The hearing addressed the disconnect between parental expectations and statistical reality. According to 2024 NCAA data supplemented by the National Federation of State High School Associations, about 6% of high school athletes play collegiately, with less than 1% of NCAA athletes drafted into professional sports.
Yet an Aspen Institute Project Play survey showed roughly two in 10 youth sports parents believe their child has the ability to eventually play Division I college sports, and one in 10 think their child could reach the pros or Olympics.
“Parents ask me all the time, ‘How does my kid make the elite team?’ And I think that’s the worst word in sports is ‘elite’ for little kids,” O’Sullivan testified. “We have to keep as many kids as possible, as long as possible, in the best environment possible.”
Health and Economic Implications
Chairman Kiley connected declining youth sports participation to broader public health challenges. One in three youth ages 10 to 17 are now overweight or obese, with medical expenses associated with obesity costing taxpayers $173 billion annually. Children average nearly 8 hours daily on screens, with non-participants in extracurricular activities spending roughly 2 additional hours every day.
The Healthy People 2030 program, administered by the Department of Health and Human Services, sets a national target of 63% youth sports participation by 2030. Achieving this goal would require approximately 3 million more kids to participate and could result in $80 billion in savings from reduced medical costs and lost productivity, according to Kiley’s opening statement.
Strategic Implications for the Industry
The hearing marks the first sustained Congressional attention to youth sports business models and market structure. While Chairman Kiley indicated bipartisan agreement on core issues, the hearing included partisan moments, with Democratic members directing questions that aligned with Van Dyck’s anti-monopoly positions.
Farrey also urged Congress to consider youth sports impacts when addressing college sports legislation, recognizing the connected nature of the broader sports ecosystem.
The hearing amplified ongoing industry debates about access, affordability, and the role of commercial operators versus community-based programs. Whether Congressional attention translates to legislative action remains unclear, but the hearing establishes youth sports participation as a policy priority tied to public health, economic productivity, and child development outcomes.
via: USA Today | Education Workforce
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