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Youth sports programs, once community-based, have become a privatized $40 billion industry

AYESHA RASCOE, HOST:

We might know deep down in our hearts that our kids are unlikely to ever play professional sports. So why are families spending thousands of dollars per year on kiddie sports teams? Journalist Caitlin Moscatello has been looking at how childhood sports have changed since private capital got into the game. Her story about the fancy facilities, paid coaches and travel teams that feed a $40 billion industry is in New York Magazine this week. Caitlin, welcome to the program.

CAITLIN MOSCATELLO: Hi. Thanks so much for having me.

RASCOE: You know, community-based recreational leagues - that's where kids used to learn to play soccer or softball, where you had the volunteer coaches and the orange slices and the minivans. What happened to those leagues?

MOSCATELLO: So what's happening is that starting in kindergarten, first grade, second grade, you now have kids who are leaving the rec programs. And they are going to these private leagues to play on private teams that are much more expensive. And it ends up diluting the rec programs not only of players, but of the parent volunteers that they rely on. If you look at - how did this happen? - ou start to see this influx of private capital into the youth sports sector. And then really the pandemic was this tipping point, as it was with, you know, so many things.

RASCOE: Yeah. Yeah.

MOSCATELLO: But park and recreation budgets were cut. Fields were shut down. Leagues were shut down. And the private teams and private programs were able to get back up and running much faster.

RASCOE: Well, what do we know about the companies capitalizing on youth sports? Like, how have they made it so expensive?

MOSCATELLO: These companies can get in and try to have a financial stake in all the different touchpoints that parents and families have when they're putting their kids into these sports leagues. So, for instance, that can be that they have a stake in the app that parents must use to look at the schedule and the tournaments, or even to look at stats and standings. But they also might have stake in the apparel company, and they have a partnership, say, with the hotels. So in addition to maybe owning the league itself, perhaps owning the facility, they also have a stake in these different touchpoints, and it allows them a level of financial control that we've seen. You know, the prices have been going up.

RASCOE: But - so is it just the well-off parents who are able to do this?

MOSCATELLO: No. It's not. I mean, of course, it's the well-off parents who can comfortably do it. But I spoke with a family who - their son's ice hockey costs them $25,000 a year. And the mom - in addition to her full-time job, she was also doing pet-sitting on the side to offset some of these costs. And you see that. I mean, there are GoFundMes set up for youth soccer, youth baseball, these programs. I mean, families are really kind of doing what they can to get their kids in.

RASCOE: I'm sure parents that are less well-off will stretch and try to make this happen. For those who are really poor or just don't have the bandwidth because they're working multiple jobs, etc., to get their kids into these leagues, it seems like this pay-to-play is leaving out a lot of kids who could be really talented.

MOSCATELLO: Absolutely. So fewer kids from lower-income homes are playing sports today than they were years ago. And so there is a gap that's been created and exacerbated by these pay-to-play programs, for sure.

RASCOE: Well - and I understand that state and federal officials are trying to regulate the industry of youth sports better. What can you tell us about those efforts?

MOSCATELLO: Yeah. So the Let Kids Play Act was introduced this spring. One of the co-sponsors of that bill is Senator Murphy from Connecticut, and I spoke with him for the piece. But essentially, what the Let Kids Play Act aims to do is to remove what it dubs vulture practices by private investors in the youth sports space. It would require any investor or firm backing a company that uses these practices - so, say, junk fees or, you know, binding contracts - they would be required to divest over a two-year period.

RASCOE: Obviously, government intervention or Congress doing something can be - is a very high bar at this moment. And so what are some ways that you could make some changes to the way things are right now?

MOSCATELLO: The good news is that we do have a model for this. So Minnesota Ice Hockey is a nonprofit organization that's centered around a network of 250 public rinks. And this statewide program has 60,000 athletes in it. Most families pay between, you know, $200 and $400 a season. Kids play with other kids from their community. And, you know, there's proof that this really works. Minnesota produces more Division 1 men's and women's ice hockey players than any other state in the country.

RASCOE: That's journalist Caitlin Moscatello. Her article "The Pay-To-Play Childhood" is in New York Magazine this week. Thank you so much for speaking with us.

MOSCATELLO: Thank you for having me. Transcript provided by NPR, Copyright NPR.

NPR transcripts are created on a rush deadline by an NPR contractor. This text may not be in its final form and may be updated or revised in the future. Accuracy and availability may vary. The authoritative record of NPR’s programming is the audio record.

Ayesha Rascoe is the host of Weekend Edition Sunday and the Saturday episodes of Up First.