What does Preamble of Let Kids Play Act do?

This bill aims to prohibit what it refers to as 'vulture investors' from investing in youth sports. The bill's stated purpose is 'to prohibit vulture investors from investing in youth sports, and for other purposes.'

What does SHORT TITLE. of Let Kids Play Act do?

This bill is formally titled Let Kids Play Act

What does DEFINITIONS. of Let Kids Play Act do?

This section defines terms used throughout the Act. “Acquired entity” refers to a company or organization where a covered firm holds an ownership interest or exercises control. “Affiliate” means an entity that controls, is controlled by, or is under common control with another entity. “Capital distribution” includes cash or share dividends, share repurchases, share redemptions, and share buybacks. “Covered firm” is defined as a private equity fund or a company owned or controlled by a private equity fund. “Invest” means to own, operate, control, manage, or otherwise direct the operation of an entity or facility. “Operational control agreement” is a contract through which a covered firm obtains authority to influence key operational decisions of a youth sports facility. “Private equity fund” is defined based on the Investment Company Act of 1940, but with certain exceptions. “Vulture investor” is a covered firm engaging in “vulture practices” or having multiple acquired entities become financially insolvent. “Vulture practice” includes actions that cause harm or create long-term risk to an acquired entity to extract profit, such as imposing debt or transferring assets. “Youth sports” encompasses organized athletic participation for individuals under 18, including leagues, facilities, and related technology. “Youth sports entity” refers to any person or organization providing, operating, managing, or facilitating youth sports. “Youth sports facility” means a field, court, stadium, or similar athletic facility used for youth sports activities.

What does PROHIBITION ON VULTURE INVESTMENT IN YOUTH SPORTS. of Let Kids Play Act do?

This section prohibits 'vulture investors' from investing in youth sports entities. It also prohibits 'covered firms' from engaging in 'vulture practices' related to youth sports investments. Prohibited practices include consolidating control over youth sports entities through acquisitions or managing multiple entities. Creating integrated networks requiring the use of the covered firm's products or services is also prohibited. Conditioning participation on the use of specific travel agents, hotels, or transportation entities is unlawful. Imposing 'junk fees' or hidden charges that are not clearly disclosed or are mandatory conditions of participation is prohibited. Restrictions on multi-year commitments, participation in competing tournaments, or use of competing tech platforms are also prohibited. The section restricts claiming intellectual property rights related to youth sports recordings, athlete data, or related technologies. Violations of the Protecting Young Victims from Sexual Abuse and Safe Sport Authorization Act of 2017 are prohibited. The Commission or Assistant Attorney General can identify and prohibit other 'vulture practices' through Federal Register notices.

What does VULTURE INVESTOR DESIGNATION. of Let Kids Play Act do?

This section designates certain firms as vulture investors. Firms invested in youth sports entities as of the enactment date are presumed vulture investors. Firms can rebut this designation by submitting a certification under subsection (b). Certification requires a sworn statement that the firm has not engaged in vulture practices. False certifications can result in civil penalties and criminal liability.

What does DIVESTITURE AND REMEDIES. of Let Kids Play Act do?

This section outlines procedures for divestiture and remedies related to 'vulture investors' operating within youth sports entities. Vulture investors are required to divest or unwind ownership stakes within two years of enactment or designation. The Chair of the Commission must issue guidance on divestment milestones within 30 days of enactment. Failure to comply with divestment milestones may result in a portion of revenue being placed in escrow. The Commission and Assistant Attorney General will review the effect of divestiture on competition, financial viability, and the public interest. The Commission or Assistant Attorney General can block divestitures deemed harmful. If divestiture is not completed by the deadline, a trustee may be appointed to oversee the sale of the youth sports entity. Remedies may include ceasing violations, disgorging profits, refunding fees, forgiving debts, and restoring financial viability to the youth sports entity. The Commission and Assistant Attorney General retain jurisdiction for at least one year post-divestiture to monitor compliance and impose additional remedies.

What does ENFORCEMENT. of Let Kids Play Act do?

This section outlines enforcement mechanisms for the Act. The Commission or the Assistant Attorney General can enforce the Act through administrative actions or civil lawsuits. The Commission's enforcement powers are equivalent to those granted under the Federal Trade Commission Act. State Attorneys General can bring civil actions on behalf of state residents under the parens patriae doctrine. Individuals adversely affected by a covered firm's violation can bring a civil action. Successful plaintiffs in civil actions may receive damages (up to three times actual damages for willful violations), restitution, attorney's fees, and other relief. Parties have the right to a jury trial. Pre-dispute arbitration agreements and pre-dispute joint-action waivers are invalid and unenforceable with regard to disputes arising under this Act. Courts, not arbitrators, will determine the applicability of this provision.

What does JOINT AND SEVERAL LIABILITY. of Let Kids Play Act do?

Vulture investors are held jointly and severally liable with youth sports entities for certain liabilities. Liabilities include debt obligations, legal judgments, pension-related obligations, and safety infractions. Control persons or affiliates of vulture investors are also liable.

What does YOUTH SPORTS FUND. of Let Kids Play Act do?

This section establishes a youth sports fund. Money disgorged under this Act without a specified recipient will be deposited into this fund. The Commission will create and distribute the fund. The fund's purpose is to serve the youth sports needs of harmed communities. Funds may be used to reduce participation costs for families. Funds may support free community access to youth sports facilities. Funds may increase financial aid or scholarships. Funds may provide necessary funding to ensure a divested youth sports entity can operate safely and effectively.

What does AUTHORITY TO IMPLEMENT THIS ACT. of Let Kids Play Act do?

The Commission has authority to implement this Act Implementation is done by publishing notice in the Federal Register Section 553 of title 5, United States Code, does not apply

Back to bills

Let Kids Play Act

Last updated: 5/13/2026 · Introduced: 5/13/2026

Author: Christopher Murphy (D-CT)

TL;DR (AI)

The bill prohibits vulture investors from investing in youth sports entities and engaging in practices that harm or create long-term risk to these entities.
Covered firms are restricted from consolidating control over youth sports entities, imposing junk fees, and claiming intellectual property rights related to youth sports recordings and athlete data.
Firms invested in youth sports entities as of the enactment date are presumed vulture investors and must divest or unwind ownership stakes within two years.
The bill establishes a youth sports fund to serve the needs of harmed communities, using money disgorged under the Act to reduce participation costs, support community access to facilities, and increase financial aid.
Vulture investors are held jointly and severally liable with youth sports entities for certain liabilities, including debt obligations, legal judgments, and safety infractions.

119th Congressin committeeHR. 8788(In Committee)Official page

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