3STEP Sports
Overview
The largest PE-backed youth sports platform in the U.S. Backed by Juggernaut Capital, Ares Management, and Fiume Capital. Operates across 9 sports with 150+ brands and 5,000+ clubs. ~$40M EBITDA (MEDIUM, April 2026). 2+ million athlete participants.
Portfolio
December 2023: acquired edp-soccer (130,000+ youth soccer players, 25+ tournaments annually), making 3STEP the largest owner-operator of youth soccer leagues in the U.S. (HIGH).
Business Model
Multi-sport platform consolidation. Acquires league operators, tournament brands, and club networks. Revenue from league fees, tournament entry fees, stay-to-play commissions (via Team Travel Source/TTS), sponsorship, and technology platforms.
Strengths
- Scale: 2M+ athletes, 5,000+ clubs across 9 sports
- Multi-sport diversification reduces single-sport risk
- EDP acquisition gave dominance in Northeast youth soccer
Weaknesses
- Multi-sport breadth may dilute soccer-specific operational expertise
- Goldman Sachs hired to explore a sale (April 2026) — potential ownership transition creates uncertainty
- Scale may create bureaucratic overhead vs. nimble independent operators
Soccer Club Brands (Owned)
- Best FC Soccer Club (Northeast) — acquired November 2022
- Seacoast United (Northeast) — added August 2021
- Aztec Soccer Club (New England) — acquired May 2023
- Chicago FC United and Chicago Magic (Midwest / Illinois)
- Liverpool FC Academy MA (Northeast)
Key distinction: 3Step owns the league/event infrastructure (EDP) but directly owns only a handful of 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.
Additional Acquisitions
- US Officials (June 2023) — referee supply and assignment services. Gives 3Step control of referee operations for its events.
- International Sporting Events (December 2023) — tournament operator
- New York Club Soccer (December 2023) — NYC-area league
MLS NEXT Relationship
As of January 2025, 3Step Soccer operates the expanded competition tier of MLS NEXT, giving them a role in the highest-tier youth pathway nationally.
Key People
- Chad Gruen — CEO, 3Step Sports
- Steve Shilling — Founder/President, EDP Soccer
- Bohdan Porytko — EDP Programming Director; CJYSA President; NJYS and US Adult Soccer boards
- John Tait — EDP Regional Manager (NY/New England)
Financials
~$40M EBITDA (MEDIUM). Goldman Sachs exploring sale as of April 2026. Valuation not publicly known.
SYNRGY Implications
Direct platform competitor. 3STEP’s scale dwarfs SYNRGY’s current pipeline, but its multi-sport focus and potential sale process may create distraction. SYNRGY’s soccer-vertical-only thesis differentiates. If 3STEP sells to a larger PE fund, the new owner could accelerate soccer-specific acquisitions — narrowing SYNRGY’s window.