Law360: Congress, States Eye Costs Of Private Equity In Youth Sports

With the cost of youth sports on the rise, Congress and state attorneys general have begun scrutinizing private equity investments in leagues, facilities, and other assets. A proposed new federal law, The Let Kids Play Act, would impose harsh requirements on private equity investors in youth sports. O’Melveny partner Garrett Johnston said: “I wonder what the true intent of the bill might have been, whether it was intended to be something that actually passes, or whether it was just a message to the private equity industry.” Johnston also said: “I think a lot of the improvements that we’re seeing in youth sports—whether it’s facilities, safety standards, coaching, apparel—those things are being made possible by private investment. It’s going to be natural that prices will go up because parents also want their children to have the benefit of those things.”

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