January 16, 2021
This article has a lot to say about the business of youth sports.
Obviously this is an industry that attracts both, good-intentioned operators as well as bad-intentioned operators. There are millions of parents out in the market looking to provide opportunities for their children. This makes the market solid and steady for companies that are doing the right thing, but it also has a tendency to attract those looking to take advantage of overzealous parents with extra money to spend.
It looks like litigation is pending as this company is unwound. Former employees and executives will be disputing who said what, and all that goes along with business litigation. But at the end of the day, who was hurt the most? The athletes and their parents.
What’s the answer? I’m not sure there is an easy one. “Buyer Beware!” seems like one answer. But an organization this size, with its far-reaching contacts, seems like an organization that could be trusted, short of an in-depth audit of its financials. But few parents have the knowledge or ability to undertake such a deep dive before signing on the bottom line.