A DAO is seeking to buy NFL Team the Denver Broncos to give fans a shot at part-owning their favorite sports team.
The top-flight NFL team, the Denver Broncos, is for sale. A Decentralized Autonomous Organization (DAO) is looking to raise more than $4B to buy the club.
A Decentralized Autonomous Organization (DAO) is an organization whose running is dictated by a smart contract. This special program resides on the Ethereum blockchain. There is no leader to a DAO. Members of the DAO vote on changes, and the weight of their vote is governed by how much of a cryptocurrency token is held. This token is called a governance token.
The group intending to purchase the Denver Broncos includes attorneys, accountants, software developers, professional athletes, and one mathematician. One attorney, formerly from Cisco’s legal division, is leading the charge. O’Brien says, “We know it sounds a bit crazy, but it’s also a bit badass.” He says that the purpose of the purchase is to make people from all walks of life own a piece of the elite sports team.
ESPN says that the Broncos are expected to court a considerable purchase amount, the biggest in American sports history.
The team’s trustees said they want the club sold in the 2022 NFL season. O’Brien says that the smart contracts and crypto wallets are configured and ready to go. The DAO will not go live until early March.
Political backing for crypto endeavors
Crypto enthusiasts have a political ace card in Colorado Governor Jared Polis. He said the state would start accepting cryptocurrencies for tax payments in summer 2022. Polis said at ETHDenver, a major Ethereum-focused crypto conference, that he is in favor of the DAO’s efforts.
“I would be excited to be part of it myself,” said Polis. He said he would be happy to help the DAO’s efforts culminate in success.
What’s the history and rationale behind DAOs?
The DAO, called BuyTheBroncos, is the latest in a series of DAOs looking to upend traditional hierarchical organizational governance by giving power back to the people. Investor Cooper Turley describes it like this, “Basically, a small group of people come together to form a chat group, and then they decide to pull capital together, [typically] using an Ethereum wallet.”
On Nov. 21, a group of crypto enthusiasts sought to bid for a rare copy of the Constitution. They called themselves ConstitutionDAO, and they were the first such organization to place a bid for the document at a Sotheby’s auction. They lost out to Ken Griffin, CEO of Citadel. Nevertheless, it was a landmark feat that opened the world’s eyes to the possibilities of crowdfunding using crypto. If they had won the auction, they would have received “people” tokens based on their contribution to the funds. This token would have granted them voting rights regarding the destiny of the antique document.
BuyTheBroncos only has 50 Twitter followers at the time of press. O’Brien has previously tried to buy professional sports teams unsuccessfully. Nevertheless, should the initial purchase attempt fail, the DAO has a plan B to raise 25% of the $4B and solicit the remaining 75% to traditional buyers. Governor Polis says that he hopes that Colorado could pull off the DAO sale.
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