Sponsorship money.
Only a couple of those organizations actually get any money from Adidas or Under Armour.
Madehoops is the best league in the west but has 2 divisions. The lower division is a big drop off from the top division. By 8th grade those teams in the top division are going to be associated with EBYL teams (Vegas Elite, Soliders and Unity).
It for sure is a journey - you just got to be smart how you want to navigate things.