WASHINGTON — Competitive cheerleading wasn't mentioned by name during Tuesday's congressional hearing on youth sports, but much of the discussion mirrored conversations the industry has been having for years.

Members of the House Subcommittee on Early Childhood, Elementary, and Secondary Education held a bipartisan hearing titled "Field of Fees: Private Equity's Role in the Commercialization of American Youth Sports," examining whether increased investment from private equity firms has contributed to rising costs, reduced competition, and fewer opportunities for families.

While the hearing focused broadly on youth sports, lawmakers repeatedly raised concerns that have become increasingly familiar across competitive cheer: industry consolidation, higher participation costs, and the growing influence of institutional investors.

What Is Private Equity?

Private equity firms invest in established businesses with the goal of increasing their value over time.

That investment can fund expansion, improve technology, develop facilities, or finance acquisitions. In many cases, private equity firms purchase companies, grow them over several years, and later sell them to another investor or take them public.

The model has become increasingly common throughout youth sports.

According to the Aspen Institute, youth sports has grown into a $40 billion industry, attracting significant institutional investment over the past decade.

Cheerleading Is Already Part of That Landscape

Competitive cheer has experienced many of the same business trends discussed during Tuesday's hearing.

The most prominent example is Varsity Brands.

Over the past two decades, Varsity expanded through acquisitions across cheerleading competitions, camps, apparel, fundraising, and school sports before changing ownership multiple times between private equity firms. In 2024, global investment firm KKR completed its acquisition of Varsity Brands in a deal valued at approximately $4.75 billion.

The transaction reflected a broader trend: youth sports businesses are increasingly viewed as long-term investment opportunities.

Cheerleading is no exception.

Lawmakers Raise Concerns About Rising Costs

Throughout the hearing, members of both parties questioned whether increased consolidation within youth sports has reduced competition and contributed to higher costs for families.

Rep. Kevin Kiley (R-California), who chaired the hearing, said many communities have seen fewer affordable options as larger organizations have expanded.

"The simple reality is that too many children are being priced out," Kiley said during the hearing.

Rep. Suzanne Bonamici (D-Oregon) called for greater transparency surrounding participation fees and business practices, while Rep. Burgess Owens (R-Utah) cautioned that youth sports should remain focused on athletes rather than investor returns.

"The mission has to be our kids, not investors," Owens said.

Familiar Themes for Cheer Families

Although Congress did not specifically discuss competitive cheer, many of the issues raised have long been part of the industry's economic reality.

Participation often includes expenses beyond gym tuition, including uniforms, choreography, competition entry fees, travel, hotels, camps, music, shoes, photography, and livestream subscriptions.

Those costs stem from a wide range of businesses—not a single organization—but together they illustrate how youth sports have become increasingly commercialized.

At the same time, supporters of private investment argue that outside capital has helped improve athlete experiences by funding larger events, enhanced production, better technology, modern facilities, and expanded opportunities for participants.

That balance between investment and affordability became one of the central themes of Tuesday's hearing.

What Comes Next?

Tuesday's hearing does not create new regulations, nor does it target any single company or sport.

Instead, it marks one of the clearest indications that Congress is beginning to examine how private investment is reshaping youth athletics.

Whether lawmakers pursue additional oversight or legislation remains uncertain.

For the cheerleading industry, however, the hearing represents something larger than a discussion about private equity.

It reflects growing national attention on the economics of youth sports—how companies grow, how families pay for participation, and how the business of youth athletics continues to evolve.

Those conversations have been part of competitive cheer for years.

Now, they're taking place in Congress.