The Apps Wrangling the Multi-Billion Dollar Youth Sports Industry
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From wondery I'm David Brown, and this is business wars daily on this January 8. Happy Monday, everyone. If you have a young person in your life who plays soccer, basketball or on some other type of pay for play club team, you know that youth sports is a lot different from decades ago. Today's travel leagues often have professional trainers and may traverse miles or even states to compete in games and tournaments in far flung locations.
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Families spend an estimated $40 billion a year on youth sports in the US.
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According to research by the Aspen Institute. Some families fork over thousands per year.
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For little Katie or Kyle to become.
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The next Carly Lloyd or Derek Jeter. Behind the scenes, an industry of apps that organize, develop, schedule and rank youth teams nationwide are all vying to get their share of this big money market. One of those apps is Mojo Sports, which was launched about four years ago by Ben Sherwood, the former president of.
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The Disney ABC television group.
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Sherwood was at the end of his Disney tenure and was also coaching his son's baseball, soccer and other sports teams. Mojo features instructional and coaching videos as well as simple team management and practice planning tools. The app has attracted more than $30 million investment, including from big names like former NFL quarterback Russell Wilson, CNBC reports. Well, now Mojo Sports has more big news. It's reached an agreement to be acquired by one of the biggest players in the space. Mojo Sports will be purchased by team management platform Team Snap, which has more than 2 million active daily users who consult the app for everything from practice schedules to game times. Another app in the space is taking a different approach, targeting entire leagues.
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The aptly named league Apps services sports leagues with more than 100 players as its clients and boasts a range of leagues across different sports. The app allows teams to manage registrations, communications and, of course, payments all in one place. The company says it's backed by sports stars like David Robinson and Shane Battier, and recently raised another $5 million for expansion. But while these apps allow youth sports leagues to run more professionally, not everyone sees the changes to youth sports in a positive light.
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Why have we allowed money to ruin youth sports?
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One New York Times headline asked. Critics, including luminaries like Kareem Abdul Jabbar, say that the race to nowhere in youth sports isn't teaching kids the fundamentals of sports, and it's changing the games in a negative way. And some even say that the hyper competitiveness in youth sports today is hurting communities. In one report on KQED, author Linda Flanagan relays one extreme anecdote. An executive son was coached by an employee of his firm. And when the young athlete was moved from the a team in his league to the b team, the executive retaliated by having the coach transferred overseas. Of course, the apps that organize these teams are only a symptom of the big money and high stakes of today's youth sports world. But there's no doubt that compared to when I was a kid, it's a whole different ballgame today from wondery.
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This is business wars daily. I'm your host, David Brown, written by Gwen Moran and produced by Jessica Yarmoski. Our executive producers are Tina Rubio and Marshall Louis.
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