This is Buying Sandlot β€” the only newsletter that focuses solely on the business of youth sports.

Our premium community launched on Friday and we already have two investment opportunities available for members. Details in the newsletter.

Let’s get to it.

In the email today:

🧒 How i9 Sports Plans To Scale

Much of the recent media attention and scrutiny surrounding the industry has leaned, in part, on the narrative that recreational options are few and far between, forcing families into high-cost alternatives.

Yes, local parks and rec departments have suffered from budget cuts over the last two decades or so. But a recent Project Play report said 53% of youth sports participation still occurs in community-based leagues β€” and that figure could be undercounting professionalized rec platforms like i9 Sports.

The Youth Enrichment Brands-owned franchise platform has had over 5M lifetime participants, operating over 1K locations across 36 states. And it is focused on further growth under new president Ron Shimek, who brings over 20 years of franchise and hospitality experience.

β€œWe're focused now on scaling it, but scaling it with intention,” he told Buying Sandlot in his first interview since joining the company.

β€œI really feel that even in the markets that we're in, we've still got untapped demand and availability to provide our services to more kids. There's a real appetite for multi-sport, low pressure, fun-first programming, and a lot of space for us to grow."

Among i9’s focus areas as it looks to grow:

  • Consistency across existing markets

  • Expansion into new communities

  • Customer service, engagement

  • Improved tech

  • Potential for sponsorships, but nothing imminent

I9's core sports across franchises baseball, basketball, flag football, soccer and volleyball with co-ed and girls-only leagues; the latter is part of its Gains are for the Girls initiative to have 500K girls on the platform by 2030.

The typical format is one combined practice/game on a weekend day; some franchises offer midweek training sessions in addition to league play. Many franchise owners partner with municipalities and schools for field and gym access.

Shimek said i9 is currently experimenting with softball and track and field in some markets. But he does not envision i9 moving into high school or adult leagues. Nor does he see i9 competing with club/travel competition or replacing middle school sports in areas where they do not exist or have been cut.

"Our identity is built around making sports accessible and enjoyable for families, especially with young kids," he said. "Any expansion outside of that into adjacent demographics -- we'd really have to answer a genuine need and one that we have not identified yet.”

YEB is backed by Atlanta-based private equity firm Roark Capital Group.

Which means i9 Sports is another well-received, well-respected youth sports player that would be automatically banned from the industry if the Let Kids Play Act passes (it would be able to petition the FTC for a waiver).

"I'm not the right person to speak to the legislation. It's out of my lane as the president of the brand," Shimek said.

"What is in my lane is how i9 operates, what we stand for, what it delivers to families. What I do know about the legislation is that they're looking to predatory practices, what's happening and honing in on those.

"What I'll tell you about our model is that there are no tryouts. There are no travel requirements. We are not out there signing deals with hotels to get a certain number of room nights at a certain rate. We're never going to do that. We barely keep score, right? We're expanding access to play with what it is that we're offering, sportsmanship-first coaching.

"If the values behind Washington's interest in youth sports are about keeping sports accessible and affordable for families -- i9's been living that since Day 1."

πŸ‘₯ Buying Sandlot Premium Community: 2 New Investment Opportunities

Our community already spans the US

Since launch on Friday, 58 members have joined our Circle community from around the US and the worldβ€” including leading tech platform executives, large operators, PE investors and advisors.

We already have 2 investment opportunities available to community members:

1) 150-acre youth-sports destination in the upper Midwest β€” major operator lease is already signed

Raising equity for a phased, ground-up multi-sport complex anchored by lighted turf soccer fields and a 6-diamond baseball quad with concessions and batting cages. The differentiator: a long-term facility operator is already locked in on a 25-year triple-net lease with annual escalators and concession/sponsorship splits, and has signed an LOI to take the second phase on the same terms β€” de-risking the lease-up that most ground-up projects struggle with. Checks start at $250K, with a ~10% target return over 5-7 years and adjacent commercial land being marketed in parallel. The full deal name, location, and prospectus is available to Premium Members with Investor access.

2) Northeast baseball complex β€” $20M Phase 1 equity raise

A ground-up baseball/softball and multi-sport complex in the Northeast (New York metro corridor) is raising Phase 1 equity β€” roughly $20M of a ~$47M total buildout, ideally all equity with limited debt capacity. The facility will pair a ~47,000 SF indoor performance center with 50+ acres of lit turf fields, targeting a 14–18% return depending on structure and operations within 12–18 months. The differentiator is built-in demand: an established league of roughly 600 teams has already committed to relocate all of its operations to the complex once built. The sponsor is a former professional player who owns and operates a sold-out training facility today, backed by an investor/CPA and a team spanning real estate, institutional finance, and construction. Premium Members with Investor access can request an introduction and full prospectus.

As a reminder, the Buying Sandlot community offers:

  • Peer Networking

  • Investment Opportunities

  • Data and Reports

Join the community based on which most closely defines your role in youth sports:

Operator includes: Clubs, 
Leagues, 
Tournaments, 
Facilities, 
Scholastic, 
Community, and Non-Profit. Service Provider includes: Tech platforms
, Software
, Insurance, Compliance, 
Founders
, Service Providers, 
Data and Analytics. Investor includes: Investors, 
Private Equity, 
Family Offices, 
Investment Bankers, 
Advisors
, NGBs and Professional Services.

Independently-owned operators gain access at no cost and can apply simply by filling out our operator intake survey.

🌎 U.S. Soccer’s AI Plans For Talent Identification

USSF COO Dan Helfrich made headlines at a Fortune event last week when he said the federation can use AI to β€œactually scout every single soccer match that a U.S.-eligible player is playing anywhere in the world."

USSF CEO JT Batson then expanded on Helfrich’s comments during an interview with Talksport, confirming the launch of a pilot program:

We need to be able to scout way more players in this country, and we need to make sure way more players are a part of our pathway than currently exist today. That will be a combination of technology, a combination of standards, a combination of scaling the number of scouts and the programming that U.S. Soccer offers.

For a number of years, we’ve been building out our own proprietary software system to manage talent identification and development in this country. We have well over 10,000 players we actively track and manage through that system, which has very much expanded the funnel of players who are part of our national team pool.

We know that’s not enough. And we know that there has been incredible growth in capabilities in technology, and being able to use AI to both identify players but also to support players in their development journey.

Batson added geography is also driving the effort β€” the U.S. is physically bigger than every other World Cup participant except Canada, so it cannot expect to have scouts everywhere.

FWIW: Researchers at Israel’s Ben-Gurion University just published a report on how AI scouting with youth athletes presents privacy issues and could reinforce biases in the long run.

On the podcast recently, we’ve talked about how the confluence of a general sentiment shift in willingness to travel (+ the costs associated with it), streaming quality, verified data, and wearables may enable scouting at-scale. I’m gonna identify this as a Trend Watchβ„’.

The one unlock that would supercharge all of this: data interoperability between platforms. Video lives here, wearable data there, and player profiles everywhere. Parents (and college and pro coaches) will increasingly demand and support platforms that aggregate inputs from various sources.

Also, the data angle here is substantial and complex… as James lays out.

There was no mention of how USSF will obtain and harness the avalanche of data needed for such an undertaking.

That’s a question a lot of people will be asking, especially those who say β€œpay-to-play” is holding the federation back on the world stage.

But I think the most intriguing thing here is Helfrich using the term β€œU.S.-eligible player.”

Does that mean leveraging AI to scout the eligible players known to USSF, or leveraging it to find eligible players? The latter is a major topic in international soccer right now because FIFA has relaxed its eligibility rules and the expanded World Cup means many more countries have viable shots to qualify.

Only eight World Cup nations this year will have 100% natural-born rosters. And Germany has already called for a compensation system when players switch federations.

πŸ’ NCAA Makes Big Change To Eligibility Plan

The D1 Cabinet has adjusted its proposed age-based eligibility model following pressure from basketball and hockey stakeholders and service academies.

An athlete’s five-year clock will now start when they enroll full-time in a school or at the start of the first academic year after their 19th birthday, whichever comes first.

The original plan said the five-year clock would begin at high school graduation.

Athletes will still have five years of eligibility over five years. The proposal is expected to be approved later this month.

Quick Take: The change is a big victory for hockey juniors leagues and prep schools. It will be interesting to see when the NCAA first gets sued over whether junior college time should start the clock. And I (James) still think we will see the pro leagues begin to complain more vociferously about how they don’t want to have their drafts full of 23-, 24- and 25-year-olds.

πŸ€¦β€β™‚οΈ Parents Behaving Badly

  • Forest, Virginia: A former county parks and recreation official has filed a $7M lawsuit, alleging he was fired for being a whistleblower about a local youth sports organization breaking rules and misusing taxpayer funds. The man is seeking damages from the county and org and wants his job back.

  • Needham, Massachusetts: The city’s parks and rec chairman faces federal fraud and tax charges after allegedly stealing over $250K from its youth baseball and softball league to pay for casinos, country clubs, debts and other purchases. The money was said to have been taken from the system used to pay umpires.

🍿 Facilities Arms Race Update: More Iowa Drama

The Kettlestone Central Sports Complex’s tax saga continues.

ICYMI: The nonprofit Iowa Youth Athletic Foundation β€” which operates the Waukee facility β€” successfully sued Dallas County for a property tax exemption earlier this year. IYAF had said it would be forced to close the venue or sell it to a for-profit operator if it had lost in court.

The latest: IYAF is suing the county again, according to The Des Moines Register. The new suit claims officials are still refusing to grant the exemption despite a judge ruling IYAF was exempt. The county reportedly said the new denial was due to IYAF not providing sufficient proof in documents filed with the lawsuit.

The $40M complex is supposed to anchor a $350M mixed-use development with a projected annual economic impact of $125M.

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