An antitrust lawsuit in the U.S. District Court in Amarillo is challenging Varsity’s dominance in cheerleading events, following a series of similar lawsuits that were previously settled. The lawsuit, brought by Open Championship Series and other independent cheer event producers, claims that Varsity’s overwhelming market control is resulting in inflated costs and limited choices for athletes, gyms, and event organizers.
According to the lawsuit, Varsity, now owned by private equity firm KKR following a $4.75 billion acquisition from Bain Capital, controls more than 80 percent of the cheerleading industry. This dominance extends beyond event production into rule-making and governance, as Varsity has close ties to organizations like the United States All Star Federation (USASF) and the International All Star Federation (IASF), both of which have faced criticism for favoring Varsity’s interests.
Attorney Mitzi S. Mayfield, representing Open Series, argues that “the concentration of power within one defendant who also controls an organization that governs the sport has cost competitors and participants millions of dollars over the past years.”
David Owens, CEO of Rockstar Championships, emphasized how Varsity’s dominance impacts independent businesses. “It is my hope that we change the situation so that there is real competition at every level, not just at our events or in the gym,” Owens stated.
Unlike other youth sports, such as Little League baseball or AAU basketball, where non-profit organizations provide governance, competitive cheerleading is overwhelmingly driven by for-profit entities.
Matt Stoller, an antitrust expert and research director at the American Economic Liberties Project, told the New York Times that Varsity’s grip on competitive cheer rivals that of Google in tech. His comments highlight growing concerns that the lack of market competition has negatively impacted athletes, families, and smaller event producers.
While several lawsuits challenging Varsity’s dominance have been settled before trial, Mayfield believes that if this lawsuit moves forward, it could force a restructuring of competitive cheerleading, making the sport more affordable and accessible.
David Hanbery, owner of Deep South Cheer and a plaintiff in the case, reinforced that cheerleading should be about athletic competition, not corporate monopolies. “What is ironic is that while the sport is competitive, the business is not, and that is to the detriment of everyone but the wealthy investors who control it,” he said.
Owens added, “Cheerleading is an incredible sport that brings families together. We just want to see fairness in the industry, where families have choices and businesses have the opportunity to grow.”
The lawsuit will now proceed through the legal system, with a possible trial that could reshape the business of competitive cheerleading. As this legal battle unfolds, families, gym owners, and athletes will be watching closely to see if this case finally brings long-awaited reform to the cheerleading industry.
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