How private equity ate youth sports
Summary
This episode examines how private equity firms have transformed youth sports into a $40 billion industry, driving costs to thousands of dollars per year for American families. Journalist Caitlin Moscatello explains how the pandemic accelerated the shift from affordable rec leagues to expensive, profit-driven club teams, leading to burnout and overuse injuries in young athletes. The show then features Megan Greenwell, who discusses the broader dangers of private equity in her book *Bad Company*, detailing how leveraged buyouts and debt structures harm workers and communities in sectors rangi…
Topics discussed
Youth sports costs and the rise of private equity
Sponsor: Veior performance joggers
Introduction of journalist Caitlin Moscatello
The roll-up strategy and hidden costs for families
Average spending and family financial strain
Decline of rec leagues and fear of missing out
Dilution of rec programs and social pressure
Physical and psychological harm to young athletes
Collective action and the Minnesota hockey model
Benefits of the non-profit Minnesota hockey system
Transition to private equity in other industries
Sponsor: Found business banking
Sponsor: Mint Mobile wireless plans
Sponsor: Chime fee-free banking
Introduction of Megan Greenwell and her book
How private equity leveraged buyouts work
The Toys R Us case study and debt strategy
Toys R Us bankruptcy and Amazon competition
The 2 and 20 fee structure and investor risk
Investors: from pensions to 401k funds
Public pension funds and zero-sum capitalism
Lack of regulation and historical growth
Proposed regulations and piecemeal legislative efforts
Credits and show outro
Sponsor: Blinds.com Labor Day sale
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