Matt Stoller, who is a highly regarded anti-monopolist, believes the U.S. Cheer industry is headed for happier times, thanks to eminent anti-trust litigation against Varsity Brands.
Stoller, who has been highlighting cheer as a classic example of private equity-funded monopolization of once-competitive industries, believes the class action lawsuit – coupled with losses from the pandemic – could permanently cripple Varsity Brands.
In today’s editorial, Stoller recaps Varsity’s rapacious devouring of its former competition, allowing the company to ratchet up the cost of uniforms, event registrations, even hotel costs.
We won’t go much beyond that because Stoller explains everything here. What we will say, however, is that the case is important not just for cheer, but for other companies that may be eyeing the multi-billion-dollar youth market for other opportunities.
