A 2025 reality-based PropCo/OpCo framework built on stabilization math
Summary
Youth sports is transitioning from a fragmented “mom-and-pop” ecosystem into a professionalized asset class. For family offices, the structural edge is vertical integration: pairing club operations (OpCo) with ownership/control of high-utilization facilities (PropCo).
Done correctly, this combines operating control and margin expansion with real-estate downside protection—but only if investors underwrite:
- The stabilization window
- The two cost lines generalists routinely misprice: talent and maintenance
1) The Market Realities of 2025
Minority pro-team stakes are often status assets. Youth sports, by contrast, is a repeat-purchase cash-flow business: weekly training, seasons, leagues, tournaments, camps, and ancillary services.
Two market facts matter for underwriting:
-
Family spend is already high—and rising fast.
The Aspen Institute’s Project Play parent survey reports the average U.S. sports family spent $1,016 on a child’s primary sport in 2024, a 46% increase since 2019. -
This is a $40B+ annual spending layer.
Congressional testimony by Aspen Institute Sports & Society executive director Tom Farrey describes private capital “chasing the more than $40 billion a year that families alone are spending.”
Investor translation:
The category behaves like a “necessity luxury” for higher-income households—creating pricing power, but also punishing operators who let quality slip.
2) The Case: PropCo/OpCo Stabilization
(WSV Underwriting, Reality-Based)
WSV underwriting posture: treat these as 18–30 month stabilization plays, not instant-yield stories.
A typical cluster (e.g., 3 clubs + 1 flagship complex) requires upfront capex for:
- Turf
- Lighting
- HVAC (indoors)
- Back-office systems
PropCo: The Real Estate Foundation (WSV Targets)
Asset profiles WSV targets:
- Light-industrial conversions (~60,000–100,000 sq ft) into climate-controlled indoor turf “boxes”
- ~30-acre outdoor complexes with lighting and tournament-grade infrastructure
WSV underwriting targets (not universal market facts):
- Stabilized yield target: 7.5%–9.5% cap rate
(Market-dependent; must be supported by local comps) - Revenue mix target:
- ~50% internal (OpCo usage)
- ~50% external (tournaments, adult leagues, camps, clinics, sponsorship)
Maintenance reality (WSV discipline):
- Reserve 3%–4% of NOI for long-cycle turf/lighting replacements and refresh capex
(Timing depends on utilization intensity)
Investor translation:
If you don’t reserve properly, you’re overstating yield.
OpCo: Professionalizing the Club (WSV Targets)
Most independent clubs underperform institutionally due to:
- Duplicated admin
- Weak retention systems
- Seasonal churn
WSV underwriting targets (cluster model):
- Typical independent performance: ~12%–18% EBITDA
- Post-integration target (3,000+ player cluster): ~28%–32% EBITDA
Drivers: centralized CRM/registration, procurement, standardized programming, and retention engineering.
Critical underwriting assumption (must be localized):
- Competitive compensation for top coaching leadership roles is required to protect retention and prevent talent flight.
Investor translation:
Coaching isn’t “labor.” It’s the product.
3) Stress-Testing the Thesis (The Inversion View)
If you want realism, underwrite the failure modes that kill deals.
Failure Mode A: The Zoning Wall
Many “perfect” sites fail due to noise, lighting, traffic, and neighborhood opposition.
WSV approach:
Favor pre-zoned light-industrial sites or structured P3 sites where municipal support is pre-signaled.
Failure Mode B: Platform Lock-In
(Sanctioning / League Dependency)
Single-league dependence is a single point of failure.
WSV approach:
Preserve multi-platform eligibility and position the facility as neutral ground for regional demand.
Failure Mode C: Volunteer Dependency + Governance Blowback
Professionalizing a club creates friction with legacy boards and culture.
WSV approach:
A defined integration plan that installs professional operations while preserving the community identity that drives enrollment.
4) The 2025 Horizon: Where the Leverage Sits
As private capital consolidates “picks-and-shovels” services (registration SaaS, payments, video), owners of physical infrastructure retain structural leverage.
In a digital ecosystem, the pitch remains the non-fungible asset.
About White Sports Ventures (WSV)
WSV is an operator-investor platform bridging elite athletic development with institutional-grade asset management. We provide family offices an execution playbook to deploy capital into youth sports infrastructure with transparency and discipline.
WSV 90-Day Integration Checklist
Professionalizing a mom-and-pop club (OpCo) and aligning it to PropCo economics
Integration Principles (Non-Negotiable)
- Protect enrollment first (no major changes during peak registration windows)
- Fix leakage before adding complexity
- One owner per workstream
- No hopium: every “should” becomes a KPI
Days 0–14: Control, Cash, Continuity
Governance + authority
- Install interim GM with decision rights and signing authority
- Confirm legal entity, bylaws, vendor/league contracts
- Lock decision rights (board vs management)
Cash control
- Audit bank/payment rails; lock down merchant accounts
- Implement purchase approvals and thresholds
- Build a 13-week cash forecast
Parent continuity plan
- Publish a continuity note: what changes now vs later
- Confirm season calendar and coaching assignments
- Parent escalation channel with response SLA
Days 15–30: Operating System Install
Registration + CRM
- Clean roster/fees/waivers; consolidate into one system
- Segment offers: rec / select / academy track
Pricing and packaging
- Tiered pricing tied to real coaching + facility costs
- Scholarship policy with governance (if used)
Coaching stabilization
- Define roles + standards (curriculum, attendance, comms)
- Comp plan aligned to retention + quality
Days 31–60: Margin Lift (Centralize + Reduce Leakage)
Vendor consolidation
- Standardize kits/equipment; renegotiate vendor stack
Scheduling discipline + utilization
- Single scheduling authority
- If PropCo: internal allocation rules + external rental pricing plan
Compliance + risk
- Background checks, insurance, incident reporting workflow
- Facility safety protocol (especially if PropCo)
Days 61–90: Growth Engine + PropCo/OpCo Alignment
Retention engine
- Weekly comms rhythm; satisfaction pulse
- Renewal cycle + deposit discipline
Pathway clarity
- Define progression tracks and measurable development markers
PropCo economics (if applicable)
- Transfer pricing policy (internal “rent”)
- Tournament sales pipeline + maintenance reserve funding rule
Day-90 Go / No-Go Gate (WSV Standard)
Answer with data:
- Renewals/retention on plan?
- Collections clean (refunds/chargebacks controlled)?
- One operating system (CRM/scheduling/payments) live?
- Coaching stabilized with standards + comp that protects retention?
- Utilization rising with prime-time control?
- If PropCo: reserves funded and external revenue ramping?
If you can’t answer these, you didn’t buy a platform—you bought a hobby with capex.
Endnotes (Insights Page)
- Aspen Institute Project Play parent survey: average U.S. sports family spent $1,016 on a child’s primary sport in 2024; 46% increase since 2019.
- Congressional testimony (Dec 16, 2025) by Aspen Institute Sports & Society / Project Play leadership citing private capital “chasing the more than $40 billion a year that families alone are spending.”
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