Sponsors (14)
The bill strengthens protections, enforcement, and remediation for youth-sports participants and communities at the cost of greater regulatory discretion, higher liability and compliance costs for investors and businesses, and a significant risk of reduced private investment and increased legal uncertainty.
Children and youth who participate in local sports (and their families) gain stronger protections: fewer hidden fees, preserved scholarships, safer facilities, and mechanisms to return programs and assets to communities when predatory investors are removed.
Victims and the public gain significantly expanded enforcement and deterrence tools (FTC/DOJ review, trustees, disgorgement, treble damages, private and state suits) to hold predatory investors accountable and restore competitive conditions.
The law funds remediation and program support (Youth Sports Fund and penalties) so harmed communities can receive financial aid, scholarships, free facility access, and operational support to keep local programs running.
Outside investors and firms may sharply reduce or avoid investing in youth sports because joint-and-several liability, heavy civil penalties, presumptions, and preclearance delays raise risk and transaction costs, risking fewer programs and higher participation costs.
Businesses nationwide face greater compliance costs, broader liability (treble damages, disgorgement), and increased litigation from expanded private, state, and federal enforcement and a potential patchwork of state rules, raising prices and legal uncertainty.
The bill concentrates regulatory discretion (designation of 'vulture practices', ability to terminate certifications immediately, expanded agency rulemaking without full notice-and-comment), creating due-process and rights-of-affected-parties concerns.
Based on analysis of 11 sections of legislative text.
Prohibits private-equity "vulture" practices in youth sports, creates a designation/certification regime, empowers FTC/DOJ enforcement, requires divestiture, and funds community youth sports.
Official title: To prohibit vulture investors from investing in youth sports, and for other purposes.
Introduced May 13, 2026 by Chris Deluzio · Last progress May 13, 2026
Prohibits private equity “vulture” investors from using a long list of abusive tactics when investing in youth sports organizations, creates a statutory designation and certification process for covered firms, and empowers the FTC and the DOJ Antitrust Division to enforce the law through administrative actions, civil suits, divestiture orders, fines, criminal penalties for false statements, and private lawsuits. The bill requires divestiture or other remedies within two years for designated violators, makes investors jointly liable for liabilities incurred while in control, and creates a Youth Sports Fund to receive penalties and disgorged monies to support community youth sports needs.