This is Buying Sandlot — the only newsletter that focuses solely on the business of youth sports.
ICYMI: TeamSnap ONE launched yesterday and Kyle sat down with TeamSnap CTO Reed Shaffner to discuss the launch. A special send with that podcast and takeaways can be found here— TeamSnap will also hold live streams today and tomorrow demonstrating the new platform for customers.
Let’s get to it.
In the email today:
💰 Sprocket Sports Scores Series A Investment
The Chicago-based youth sports management services and software firm announced it has finalized an investment round with Frontier Growth, which specializes in vertical SaaS companies.
The capital will be used to "accelerate investment across its product suite and sales and service teams."
Frontier’s website says the firm typically seeks out companies with $3-$20M in ARR and at least 25% annual growth with a typical initial investment of $5M to $30M.
Sprocket touts itself as the only independent player with a modern platform in the space that remains founder-controlled and -led. All available data suggests it has hundreds of clubs and teams on its platform.
Sprocket received several write-in votes for our “youth sports platform” poll a couple of sends ago. So if that wasn’t an indication of some momentum, the Series A certainly is.
Of note: Sprocket is LOVB’s preferred management software provider for its club volleyball network— it also has a partnership with MLS’ Chicago Fire for its youth soccer affiliate program.
📈 That Makes More Sense
SportsEngine’s value is believed to be in the ballpark of $400-$500M, according to Bloomberg.
That checks out far more than the range of $150M to $200M mentioned by The Information last week when it broke the news that Versant is shopping the youth sports management and streaming platform.
(SportsEngine was valued at $133M in 2014 and the youth sports tech business is estimated to be worth $10B.)
Versant has hired asset management firm Lazard to explore deals and there have been "discussions with suitors including other companies and sports investors.”
But the Comcast cable network spinoff company is still open to holding onto SportsEngine, according to the Bloomberg report.
More of our take from last week can be read here.
⛳️ Topgolf Sold To PE
While not youth-focused, we hear lots of a “Topgolf for ____” businesses around youth sports. Indeed, our podcast guest tomorrow considers themselves the “Topgolf of baseball.”
Maybe not the best comparison to use anymore.
Owner Callaway sold a 60% stake in the business to private equity firm Leonard Green, valuing Topgolf at $1.1B.
This a significant markdown from the estimated $2B Topgolf was worth at the time of its merger with Callaway.
Why?
As we’ve written here before, there are huge real estate, buildout, infrastructure and operating (it’s a restaurant!) costs with each Topgolf location. Worse is that Topgolf struggled to retain customers (though recently noted upticks in same-location growth). Sportstainment is a difficult business, made even more difficult with the amount of space needed for a golf facility.
Here’s what I wrote on November 10 about Footlab’s expansion to the US:
But I do think that for every successful sportstainment concept, there will be 4 that go belly-up for various reasons. As an example, TopGolf has gotten itself into trouble largely because of the real estate costs involved in each facility, never mind the insane decision to allow kids birthday parties to be on the third deck of their venues. The bigger opportunity seems to be for existing sports facilities and tournament locations to add the tech, systems, and food and beverage offerings that many of these newer venues include. This is why I’m bullish on the asset-light platform model like Batbox (licensed simulator) and scaled hospitality plays that can elevate things at the places where athletes and parents are already spending time. Those businesses come without the fixed costs and operational headaches of running a whole facility.
Point stands.
🏢 SFC Adds To Its Roster
Courtesy of SFC
The Sports Facilities Companies will manage day-to-day operations of the All American+ Field House in Monroeville, Pennsylvania.
The venue is the Pittsburgh area’s biggest sports and volleyball facility.
James Pappas has been appointed the new GM. He previously worked with the Pittsburgh Pirates and Riverhounds and at Tickets.com.
The venue draws over 41K visitors per month and has seven hardwood multi-purpose courts, a 100-yard indoor turf field and an outdoor 75-yard field. It has an events capacity of 5K.
✍️ Everyone Wants In On Youth Sports
They’ve got you covered on and below the turf.
Soccer Shots — the youth soccer program franchise — has launched a national partnership with Trust & Will, an online estate planning platform.
Trust & Will will be the Official Estate Planning Partner of Soccer Shots starting in January
A Trust & Will logo will go on the back neck of Soccer Shots athletes' uniforms
The partnership includes a Community Grant Program to expand access in underprivileged communities
Other initiatives including contests, sweepstakes and free coffee and food at some events
Soccer Shots serves over 700K athletes ages 18 months to 18 each year across the U.S. and Canada.
In other words: The exact market a company that writes your will online would want to reach.
🪙 Youth Sports Will Be On U.S. Currency
Yes, you read that right.
The Circulating Collectible Coin Redesign Act -- passed by Congress in 2020 -- scheduled the Youth Sports Quarters Program for 2027-30.
That means the U.S. Mint "will issue up to five quarters annually with reverse designs featuring youth sports."
There will also be a new Paralympics-inspired half-dollar design released in each of those years.
Megan Sullivan, the U.S. Mint’s acting design chief, said the renderings “are currently in development and will be presented at a later meeting” during yesterday’s session of the Citizens Coinage Advisory Committee.
Special coin designs are like interleague baseball.
I remember my grandmother buying us all 50 state quarters in the hard plastic casing.
The first Yankees-Mets two-stadium doubleheader was my moon landing.
But now? I could not tell you any other reverse designs on coins and I cannot believe we put up with the Marlins playing the Mariners on random Tuesdays in May.
That said: It is cool that youth sports will be honored with this program and it’s another sign of how significant the industry has become in culture and society.
📺 Extreme Makeover: Youth Sports Edition
“Play it Forward: Game On” — a six-episode series where celebrity hosts go undercover to deliver makeovers for under-resourced youth sports teams — debuts tonight on Nickelodeon at 5:30 p.m. ET.
Dick’s Sporting Goods’ in-house Cookie Jar & A Dream Studios is behind the project.
Former WNBA player Renee Montgomery, Kel Mitchell of “All That” fame and YouTuber Jesser will be the hosts.
Dick’s Sporting Goods Foundation Director Kristen Garmey will lead the makeovers, which will feature everything from new uniforms to field upgrades.
🔗 Youth Sports Links
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Good game.