Underwood Law Says Anti-Trust Case Could Benefit Millions of Families Whose Children Participate in Competitive Cheerleading

AMARILLO, Texas--(BUSINESS WIRE)--An anti-trust lawsuit filed in U.S. District Court in Amarillo could have a nationwide impact on the millions of kids and their families who participate in competitive cheerleading.

Conservative estimate says over a million children, primarily girls, participate in competitive cheerleading. Unlike non-profit youth sports programs, such as Little League baseball, Cheerleading is dominated by one for-profit company owned by one of the nation’s most prominent private equity firms and according to published reports controls more than 80 percent of the market.

“Ironically, in a sport based on competition, there is little competition when it comes to who can organize and promote the sports,” said Attorney Mitzi S. Mayfield of Underwood Law who represents Amarillo plaintiff Open Series, the owner of the Open Championship Series.

“I believe 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,” said David Owens, CEO at Rockstar Championships LLC.

Matt Stoller, an antitrust expert and the research director of the American Economic Liberties Project, told the New York Times that the cheer giant is a monopolist whose dominance in its area rivals that of Google in tech and has had negative impacts for participants and their families.

Last year KKR, one of the largest private-equity firms in the world, bought Varsity and its affiliate companies from Bain Capital for a reported $4.75 billion.

“We know that a number of lawsuits similar to ours were settled prior to the sale,” said Mayfield. “If our case goes to trial there is the real potential that there will be significant changes in the competitive environment regarding this sport that will benefit the families that participate and others who participate in the sport.”

“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,” said Owens. “Competitive cheerleading is a wonderful, family friendly activity that is fun and builds character and teamwork among the young people who participate.”

“This environment not only impacts our ability to do business,” said David Hanbery, whose Deep South Cheer is another plaintiff in the case. “We are all about competition,” said Hanbery. “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.”

“We just want a level playing field for everyone involved in the sport,” he added.