The Let Kids Play Act prohibits private equity firms with a history of extracting value from companies—known as "vulture investors"—from investing in youth sports organizations or engaging in harmful practices like consolidating multiple sports entities, imposing excessive fees, using restrictive contracts, or claiming ownership of athlete data. Vulture investors currently holding stakes in youth sports entities must divest within two years by selling their ownership and returning assets and intellectual property; those missing the deadline face monthly revenue escrow requirements and potential forced sales by a government-appointed trustee. The Federal Trade Commission and Department of Justice are granted authority to enforce the law, impose financial penalties including profit disgorgement and debt forgiveness, and oversee compliance for at least one year after divestiture. The law also includes anti-evasion provisions to prevent companies from circumventing these protections through corporate restructuring or reorganization schemes.
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