It turns out, parents will pay a lot of money to watch their nine-year-old's soccer game on TV.
Driving the news: Montreal-based live sports streamer LiveBarn has been acquired by U.S. private equity (PE) firm GTCR for ~US$400 million, the latest in a string of PE buyouts in the youth sports space.
LiveBarn is kind of like ESPN for youth sports, with cameras capturing live games in over 4,000 arenas, courts, and fields across North America.
The company offers a streaming subscription that includes live game feeds, highlight packages of individual players, and even data analysis — a feature we’re confident has made life more difficult for the children of overly intense hockey parents.
Why it matters: Youth sports have evolved from a primarily non-profit-run space to become a US$40 billion a year industry, larger than the recorded music, box office, and sports betting sectors.
Eager parents have been a driving factor in this shift, paying tens of thousands of dollars for personal coaching, academies, scouting tournaments and other services that give their kid a better shot at going pro.
Whether it’s delusion or aspiration, one study found that ~20% of American parents believe their kid could play Division I college sports, while 10% believe their kid will make it to a pro league or the Olympics.
Our take: Canadian families already spend an average of over $3,000 a year on their kids' athletic endeavours. As private equity continues to move into the space, the goal of maximizing profits could make youth sports less accessible for Canadians.—LA