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3STEP Sports

Overview

The largest PE-backed youth sports platform in the United States. Headquartered in Woburn, Massachusetts. Founded by David Geaslen, who now serves as Chairman. Tania King was named CEO in November 2022. Backed by Juggernaut Capital Partners (initial investment 2019), Ares Management, and Fiume Capital. Operates across 9 sports with 76+ acquired brands in 43 states. Serves 3.2 million athletes through nearly 1,500 events and leagues. More than 53% of participants are female. ~$40M EBITDA (MEDIUM, Jan 2026).

Goldman Sachs was hired in January 2026 to explore a sale or capital raise (HIGH).

Portfolio

Soccer Leagues & Events

  • EDP Soccer — Acquired December 2023. 130,000+ youth soccer players, 5,500+ teams, 25+ tournaments annually. Largest youth soccer league operation in the U.S. Spans New England, Mid-Atlantic, Ohio, Florida, Eastern Canada.
  • CM8 Soccer — Leagues & Events, National
  • National Academy League (NAL) — Operates the expanded competition tier of MLS NEXT (as of January 2025)
  • New England Club Soccer League (NECSL) — Youth soccer league, Northeast
  • New York Club Soccer — NYC-area league (acquired December 2023)
  • ISE Events (International Sporting Events) — Tournament operator, Northeast (acquired December 2023)
  • Reds Soccer Events — Tournament operator, Northeast
  • Soccer Events Group — Tournament operator, Midwest
  • US Officials — Referee supply and assignment services, National (acquired June 2023)

Soccer Club Brands (Directly Owned)

Non-Soccer

  • Baseball (Select Baseball League, New Balance Tournaments, multiple club brands)
  • Volleyball (multiple club acquisitions since 2022)
  • Lacrosse, softball, field hockey, basketball, and other sports
  • Baseball America — media property

Key distinction: 3STEP owns the league/event infrastructure (EDP) but directly owns only a handful of soccer clubs. In NJ specifically, 3STEP controls the league that 100+ clubs play in but does not directly own NJ clubs. This creates a dual role as both infrastructure provider and potential competitor.

Business Model

Multi-sport platform consolidation. Acquires league operators, tournament brands, club networks, and service companies. Revenue streams include:

  • League fees (EDP, NAL, NECSL, Regional Academy League)
  • Tournament entry fees (25+ soccer tournaments annually plus multi-sport events)
  • stay-to-play commissions (via TTS — official housing partner since June 2024)
  • Club membership/player fees (directly owned clubs)
  • Sponsorship and media rights
  • Referee services (US Officials)
  • Technology platforms and data

The MLS NEXT expanded competition tier gives 3STEP a role in the highest-tier youth pathway nationally, which creates both revenue and strategic leverage.

Strengths

  • Scale: 3.2M+ athletes, 1,500 events, 43 states, 9 sports — no other youth sports operator matches this footprint
  • Multi-sport diversification reduces single-sport risk and creates cross-selling opportunities
  • EDP acquisition gave dominance in Northeast youth soccer league infrastructure
  • MLS NEXT relationship provides premium pathway positioning
  • Vertical integration: leagues + tournaments + referees + clubs + media
  • Institutional investor backing provides acquisition capital

Weaknesses

  • Multi-sport breadth may dilute soccer-specific operational expertise
  • Sale process uncertainty — Goldman Sachs exploring a sale (Jan 2026) creates potential leadership distraction and ownership transition risk
  • Scale may create bureaucratic overhead vs. nimble independent operators
  • Club ownership is thin — controls infrastructure but directly owns few clubs, meaning value capture depends on league/tournament fees rather than direct club economics
  • Integration complexity — 76+ acquired brands across 9 sports creates operational sprawl

Key People

  • Tania King — CEO (since November 2022). Former operations executive at high-growth companies.
  • David Geaslen — Founder and Chairman. Built the initial platform.
  • Steve Shilling — Founder/President, EDP Soccer (now 3STEP subsidiary)
  • Chad Gruen — Former CEO, SMP Holdings (Chicago FC United / Chicago Magic, acquired 2022)
  • Bohdan Porytko — EDP Programming Director; CJYSA President; NJYS and US Adult Soccer boards
  • John Tait — EDP Regional Manager (NY/New England)

Investors

  • Juggernaut Capital Partners — Mid-market PE firm, initial 2019 investment
  • Ares Management — Large-cap alternative asset manager
  • Fiume Capital — Growth equity partner

Financials

  • EBITDA: ~$40M (MEDIUM, Jan 2026)
  • Revenue: Not publicly disclosed. Given EBITDA and typical youth sports margins (15-25%), implied revenue is $160M–$270M (LOW — estimate)
  • Valuation: Not publicly known. At typical PE multiples of 10-15x EBITDA, implied valuation could be $400M–$600M (LOW — speculative)
  • Goldman Sachs engaged to explore sale or capital raise (January 2026)

Strategic Notes

The most significant platform competitor by scale. Key strategic considerations:

  1. Scale gap: 3STEP’s $40M EBITDA and 3.2M athletes represents a scale no other youth sports operator currently matches. However, 3STEP’s multi-sport sprawl creates a meaningful contrast with soccer-vertical-only platforms.
  2. Sale process dynamics: If 3STEP sells, the new owner could either (a) accelerate soccer-specific acquisitions — compressing the window for independent soccer platforms, or (b) deprioritize soccer in favor of higher-growth sports — creating openings for soccer-focused operators.
  3. Infrastructure dependency: Any soccer club operating in the Northeast will likely need to participate in EDP leagues, making 3STEP both a market competitor and an essential partner for clubs in its footprint.
  4. Club acquisition overlap: 3STEP has demonstrated appetite for club acquisitions (Best FC, Seacoast United, Aztec, Chicago FC/Magic). Soccer-vertical platforms pursuing similar clubs will encounter 3STEP as a competing buyer.
  5. Multi-sport distraction: 3STEP’s 9-sport breadth means soccer receives fractional management attention compared to operators with a 100% soccer focus.

Open Questions

  • What will the sale process yield? Who are potential buyers?
  • How integrated are the 76+ brands operationally? Is there a path to unbundle soccer assets?
  • What is the actual revenue split between soccer and non-soccer?
  • How sticky are the EDP league relationships — could clubs migrate away post-sale?

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