A youth player for MLB Pitch Hit & Run takes the field.Courtesy of RCXA version of this article appeared in the CNBC Sport newsletter with Alex Sherman, which brings you the biggest news and exclusive interviews from the worlds of sports business and media. Sign up to receive future editions, straight to your inbox.Former New York Giants quarterback Eli Manning’s private equity firm Brand Velocity Group is acquiring RCX Sports, the company that manages the licenses of the official youth sports programs of the NFL, NBA, WNBA, MLS, NHL and MLB. RCX has about 150 employees and makes money distributing sports products such as uniforms and equipment and servicing local parks and recreation centers. Financial terms of the deal weren’t disclosed. The transaction is supported by a broad investor group including other former and current athlete partners Emmitt Smith, Larry Fitzgerald and Jameis Winston.Parents of kids who play youth sports are likely quite familiar with the programs: NFL Flag; Jr. NBA; Jr. WNBA; MLS GO; NHL Street and MLB Pitch Hit & Run. NFL Flag is the largest youth sports league globally, involving about 1 million kids, according to RCX CEO Izell Reese. The business of youth sports is well suited for private equity. It’s supported by passionate customers, steady and reliable cash flows — every sports season comes with fresh fees — and it’s decentralized. This lack of cohesion has led to a myriad of mobile apps and websites used to keep track of games, pay league fees, order equipment and chat with coaches. A standard private equity playbook is to roll up a variety of smaller leagues or apps, taking cost out by eliminating backend duplication and gaining scale via a series of acquisitions. This is starting to happen in youth sports. Josh Harris and David Blitzer, two of the most prominent private equity partners in the world, started Unrivaled Sports two years ago as their youth sports rollup investment vehicle. Get the CNBC Sport newsletter directly to your inboxThe CNBC Sport newsletter with Alex Sherman brings you the biggest news and exclusive interviews from the …
