This is Buying Sandlot β the only newsletter that focuses solely on the business of youth sports.
Letβs get to it.
In the email today:
π Spanning The Globe
Elite high school basketball is bridging the pond.
IMG Academy and SPIRE Academy are among the founding members of ATLAS, a new competition platform featuring top academy and prep programs in the U.S., Canada and Europe.
The 11-school circuit will launch in November and play a round-robin, transatlantic regular season schedule before a championship event next spring.
Mike Morreale β the former commissioner of the Canadian Elite Basketball League β will have the same role for Atlas, which is operated by WorldStage Sports. Spire coach Kevin Boyle will serve as the platformβs chief basketball officer.
Announcements on funding, sponsorships and media rights are expected prior to tipoff.
The schools:
IMG Academy (Fla.)
SPIRE Academy (Ohio)
DME Academy (Fla.)
Prolific Prep (Fla.)
Sunrise Christian (Kan.)
Orangeville Prep (Ont.)
Orange1 Bassano (Italy)
Pallacanestro Varese (Italy)
OrangeAcademy Ulm (Germany)
Mega Basket (Serbia)
Ε½algiris (Lithuania)
All 11 teams will compete in a season-opening event at IMGβs Bradenton campus on Nov. 11-13.
The schedule will be a mix of all-team and small group competition events. Atlas will also have events at Spireβs campus in Geneva, Ohio, several Florida locations, Phoenix, Italy, Lithuania and Toronto.
All teams will compete at the events in Kaunas (Jan. 4-7), Phoenix (Feb. 18-20) and the season-ending championship event in Toronto on March 4-7.
We are super bullish on academies and major sports travel, and here the two become one.
Certainly, the concept of playing high school basketball in Lithuania or against Varese, Italy will seem insane to some. But youth sports discussions - now (mis)informed by a single mainstream narrative that has taken root - often fail to understand the differences between participation sports (rec and intramural), experiential (mid-level travel sports, weekends in Aberdeen, travel abroad), and elite competition.
Atlas certainly falls into the latter, forming a global super league for elite basketball schools. Iβm highly intrigued by this and the general global travel opportunity. It makes Fastbreak AIβs travel ambitions seem all the more prescient.
Probably a good time to plug our new vertical, Buying Sideline, which covers the business of sports hospitality, premium experiences, and travel:
The idea of a superleague that exists within the traditional system β IMG, SPIRE and all the U.S. schools can still participate in their sneaker circuits and domestic competitions; the European and Canadian academies remain in their ecosystems β is really smart.
It also begs the question: Can this be pulled off for elite high school football next?
Iβve mentioned before that I think a round-robin scheduling pact that ensures all the big names play each other is the path to a viable media property. We now have IMG and SPIRE β who does not play football for now β on the board with the concept.
π₯ Buying Sandlot Premium: Youth Sports Scheduling Remains Unsolved
We surveyed 49 readers on how they use and interact with schedules. More than 70% have 3 or more team schedules during an active season. How they view, interact and share those schedules varies greatly⦠and still requires manual work.
Premium members get access to all of this data and to a community where they can network with other members. Upgrade to premium for full access.
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ποΈ AAU Faces Congressional Scrutiny
The Amateur Athletic Union is facing heat on Capitol Hill following a joint ProPublica/Washington Post report that it failed to implement pledged reforms and adequately address allegations of abuse within its organization.
Rep. Brett Guthrie (R-KY) and Rep. Frank Pallone Jr. (D-NJ) β the chairman and ranking member of the House Energy and Commerce Committee, respectively β sent a letter to AAU leadership saying its shortcomings are "unacceptable," according to The Hill.
The letter also drew a parallel between the claims surrounding AAU and U.S. SafeSport, which was implemented by Congress in 2017 following USA Gymnasticsβ Larry Nassar scandal.
βWhile progress has been made in the Olympic and Paralympic movement, unfortunately we are seeing parallels between what the Committee saw in its prior investigation with what is being uncovered within the AAU today,β Guthrie and Pallone wrote.
Quick Take: Ankored CEO Seth Lieberman said on our recent compliance and safety webinar that he expected there will be federal legislation/standards at some point, but he could not predict how or when. There is a long way to go here, but this could be a catalyst that pushes Congress to do something, whatever that could entail.
π¨ In Other Legislative News β¦
A New Jersey lawmaker has proposed a bill that would ban stay-to-play policies in the state.
Assemblywoman Mitchelle Drulis (D-Ringoes) told NJ.com she introduced the legislation last month because she felt the 2024 Varsity Brands settlement did not go far enough.
The bill would it make it unlawful under the stateβs consumer fraud act for βa youth serving organization to require, as a condition of eligibility to participate in an activity or service it provides, the use of a designated travel agent, lodging, or transportation entity.β
A youth serving organization is defined as βa sports team, league, athletic association or any other corporation, association or organization, including public and nonpublic schools, which provides recreational, instructional, educational, cultural, social, charitable or other activities or services to persons under 18 years of age."
The bill would take immediate effect if passed. Organizations would face fines (up to $10K for first offense, up to $20K for subsequent ones). Violations could also "result in cease and desist orders issued by the Attorney General, the assessment of punitive damages, and the awarding of treble damages and costs to the injured party."
The bill's language defining youth serving organizations is pretty broad. You could make the argument it covers any group that serves kids, regardless of whether the actual event involves kids.
That could make this a tough sell in Atlantic City, Newark and anywhere else that attracts events. Because what often gets overlooked in this conversation is the mechanics of what is called stay-to-play in youth sports is commonplace in any other event-based industry. The consumer is just typically an institution with an expense account rather than an individual family.
Also: Drulis represents a youth sports hotbed. Diamond Nation is in her district, as are other facilities and the businesses that benefit from regional sports tourism. And based on location most New Jersey families will be covered by industry-standard stay-to-play exemptions. Not sure how much will there is for legislation that impacts constituents and would likely benefit out-of-state families more than in-state ones.
π Leifras Reports Earnings, Talks Global Expansion
The Nasdaq-traded Japanese sports and social business reported record revenue and operating income for H1 of FY26 on Thursday:
Net revenue: Up 8.9% YoY
Operating income: Up 35.9%
Net income: Up 43.5%
Leifras said its full-year guidance remains unchanged:
Net revenue: $82.9M-$95.6M (up 10.8%-27.9% YoY)
Operating income: $4.5M-$5.2M (up 13.2%-33.9%)
Operating profit margin: 5.5%-5.6% (up 0.2%-0.3%)
The earnings report comes about a month after Leifras expanded outside of Japan for the first time, acquiring a soccer school in Canada.
The company has made international growth a goal, but CEO Kiyotaka Ito indicated it will be a cautious process during an English language earnings call.
(The callβs audio appeared to be AI-generated alongside the presentation slides; all questions were pre-submitted and selected by Leifras.)
Ito said the βCanadian Initiativeβ was purposely confined to a test market to avoid βexcessive riskβ and that βonce we have confirmed that the business model is repeatable and identified a clear path to success, we intend to commit capital and scale up.β
Ito added that Leifras does not want to start an overseas business from scratch.
βWe envision an add-on model in which we enhance existing services that already have an established revenue base in the local market,β he said.
Ito acknowledged some may feel Leifrasβ operating margin is too βmodest,β but he attributed it to investments in participant safety. βWe do not intend to lower that standard,β he said.
Of course, itβs also worth noting what Leifras said in its press release at the time it acquired the Canadian soccer school: βThe acquisition represents an important step in establishing Leifras' business platform in North America and advancing its overseas growth strategy.β
We think Leifras is one to watch.
Quick Take: We have reached out to Leifras and are hoping to chat with them at some point. Also β βThe Canadian Initiativeβ would be a great title for a spy thriller.
π§’ NFHS, Positive Coaching Alliance Team Up
The organizations have launched βBefore Itβs Over,β a national campaign βfocused on reinforcing the important role adults play in creating positive high school sports experiences.β
The joint initiative will provide athletic directors, administrators, coaches, and parents with resources and practical tools to help foster environments that prioritize character development, personal growth, and a positive experience for student-athletes across the country.
NFHS and PCA will provide participating schools with digital toolkits, educational programming, signage and social media resources.
π Youth Sports Links
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Good game.