Bill > S4522

This bill, titled the "Let Kids Play Act," aims to prevent "vulture investors"—defined as private equity funds or companies controlled by them that engage in harmful practices to extract profit, such as imposing excessive debt, degrading operations, or using "roll-up strategies" to consolidate control—from investing in or operating youth sports organizations. The bill prohibits such vulture investors from acquiring or controlling youth sports entities, which encompass all organized athletic activities, facilities, technology, and services for individuals under 18. It also makes it unlawful for any "covered firm" (a private equity fund or a company it controls) to engage in "vulture practices" within youth sports, including creating exclusive networks, imposing hidden fees, restricting participation in other events, or claiming ownership of athlete data and intellectual property. Existing investments by covered firms in youth sports entities are presumed to be vulture investments unless the firm can certify to the Federal Trade Commission (FTC) and the Assistant Attorney General that they have not engaged in vulture practices and will not do so in the future, with severe penalties for false certifications. The bill mandates divestiture of any youth sports entities controlled by vulture investors within two years, with the FTC and Department of Justice overseeing the process and imposing remedies to restore the financial viability and operational independence of these entities, with any funds recovered or disgorged to be deposited into a Youth Sports Fund to benefit youth sports programs. The bill also establishes joint and several liability for vulture investors for liabilities incurred by youth sports entities under their control and allows for private rights of action for those harmed by violations, with provisions to prevent evasion of the Act's requirements.