The Health and Fitness Market

On my way to San Diego this weekend, I had an opportunity to read some great articles in various Business Journals from around the United States. I came across one article, which talked about Bunker Hill Capital's investment into a Sacramento-based fitness chain. Unlike national giant 24 Hour Fitness, the fitness chain known as California Family Fitness, focuses on building clubs that attract families. Their concept has worked, and they have built a strong chain of stores in the Sacramento area during the last decade or so.

What really struck me was, why are venture capital groups investing in fitness groups -- or more importantly, why are they investing in the health and fitness of kids? One of the concepts I have talked about in a variety of papers, blogs, and lectures has been this notion that youth sports in the United States is big business. No wonder then that vc groups are looking to cash in on the returns that are surely ahead for the youth sports and family market. With the flood of reports about the unhealthy lives our kids are engaging in nowadays it is clear that some are trying to find a market niche for profit.

Just the other day, I came across another article that talked about another vc firm leading the second round of funding for a high school sports website called Maxpreps (www.maxpreps.com). Its just another example of the money being thrown at youth sports both at the club and high school level.

In the wake of these readings, I have been thinking a lot about my book (in progress) titled The Sociology of Youth Sports: The Demise of American Amateurism, and the necessity to focus a lot more on the economics of youth sports and how that is also contributing to the changing landscape of how we view youth sports. A great deal of the book focuses on the culture and social dynamics of youth sports that have been a very profound influence in the way we deal with kids, both on and off the sports field.

I am interested to hear from others about their experiences with youth sports, and how big money is changing the way we think about this market segment.