Private Equity in Youth Sports: What Operators Need to Know in 2026

Deals keep coming:

TeamSnap

$150M (2021)

IMG Academy

$1.25B (2023)

Varsity Brands

$2.5B (2018)

Multiple acquisitions

Soccer Shots, 3STEP, more

Private equity is eating youth sports. I'm in a PE-backed franchise. Here's what you need to know if you're still independent.

The Numbers: A $40B Feeding Frenzy

The industry is projected to hit $69B by 2030. PE sees recurring revenue, fragmentation, high margins, and defensible assets. The roll-up play is on.

The PE Playbook

Phase 1: Buy a Platform

Acquire a national franchise, facility operator, or software platform. That's the foundation for scale.

Phase 2: Roll Up the Market

Bolt on regional clubs, local programs, academies. Consolidate customer bases, crush competition, and create buying power.

Phase 3: Optimize & Extract Value

Raise prices, cut costs, cross-sell, and exit in 5-7 years with 3-5x returns.

What PE Actually Improves

Capital

Build facilities, hire coaches, invest in marketing

Professionalization

HR, legal, financial controls, playbooks

Scale

Bulk buying, centralized marketing, shared tech

What PE Takes Away

Price Increases

Less competition = higher prices. $120/season becomes $180/season. Affordability suffers.

Loss of Local Identity

Personalized coaching and community vibe replaced by standardized curriculum and corporate branding.

Profit Over Purpose

IRR trumps development. PE tracks revenue per participant, not whether kids learned teamwork.

Operator Burnout

Aggressive growth targets, new software, exhaustive reporting. Coaches turn into dashboard managers.

Can Independents Compete?

Short answer: yes, if you play to your strengths.

Strengths

Local relationships: you know families by name.
Flexibility: scholarships, pricing tweaks, small groups.
Development focus: you coach kids, not just chase margins.

Weaknesses

Marketing: you have Canva vs PE's full-time teams.
Technology: you're on spreadsheets, they have enterprise platforms.
Facilities: you rent public parks, they own complexes.

Sell or Stay? Decision Framework

Consider selling if:

• You're burned out and ready to exit.
• You're at capacity (100+ participants) and want scale money.
• Offer is life-changing (7-figures) and acquirer respects your values.
• You have a plan for after the sale.

Avoid selling if:

• You still love coaching and growing.
• You can grow independently with healthy margins.
• The offer is weak (2-3x revenue).
• PE wants to gut your team or impose rigid pricing.

Key questions to ask:

• What happens to my staff?
• What happens to pricing for families?
• What happens to me post-sale?
• What's the earn-out structure?
• Can I walk away (non-competes)?

How to Compete With PE

1. Own your niche

Specialize in one sport, one age group, one community. Be the best at X — they can't replicate that.

2. Double down on relationships

PE uses automation. You text parents, attend school events, know every kid's name.

3. Leverage flexibility

Offer scholarships, adjust pricing, keep group sizes small. Position yourself as the personalized alternative.

4. Build your own tech stack

Use free tools (Stripe, Mailchimp, Google Calendar, Wave). Keep costs $0-50/month.

5. Partner with independents

Share best practices, pool procurement, refer overflow, co-market. Scale collectively.

What Happens Next?

Scenario 1: Continued consolidation

PE controls 50%+ of market. Independents serve niches (ultra-local, ultra-premium, or ultra-affordable).

Scenario 2: Overreach & backlash

Prices spike, families revolt, PE exits at losses. Independents regain share.

Scenario 3: Regulation

Governments step in on access/affordability. PE margins shrink.

The Bottom Line

PE brings capital, professionalism, and scale. It also raises prices, erases local flavor, and burns out operators.

Stay independent if you love the coaching, own your niche, and lean into relationships. Sell if the offer is life-changing and you trust the buyer.

Either way: know what you're building and who you serve. PE is coming whether you like it or not.