This research addresses the appeal for more empirical-based research on exclusionary practices in local community sport that often go unchallenged within dominant discourses. By examining how organised community sport clubs can uphold systemic segregation of various ethnic, racial, linguistic, religious and socioeconomic groups, this study also draws attention to the importance of research on race, ethnicity, and education in primary school age children; a population group often ignored in both racism studies and studies of sport. Using interview and focus group data from school principals and students (aged 9-12), including students from refugee and asylum seeker migrant backgrounds, collected over 3 years from two schools in the same multicultural community in Melbourne, Australia, this paper challenges the depiction of sport as an uncontested inclusive space in national and educational discourse, and instead demonstrates the continued existence of exclusion through systemically mediated segregation in organised community youth sport.