Several Democrats have proposed legislation aimed at stopping “private equity’s takeover of youth sports.”
New proposed federal legislation would effectively ban private-equity investors from owning or operating youth sports businesses by forcing existing owners to sell assets and penalizing those who engage in predatory practices.
The “Let Kids Play Act” was introduced Wednesday by Sen. Chris Murphy (D., Conn.) and Rep. Chris Deluzio (D., Pa.), alongside several other Democratic lawmakers who make up the “Monopoly Busters Caucus,” including Sen. Cory Booker (D., N.J.), plus Reps. Pat Ryan (D., N.Y.) and Pramila Jayapal (D., Wash.).
The bill would force “vulture” investors to divest from youth sports businesses within two years. It would also ban several practices that have become increasingly widespread:
The bill would require “vulture” investors to refund any junk fees imposed on customers and create a “Youth Sports Fund” with the money from penalties. That fund would be used to pay for scholarships and preserve local sports facilities.
