Former Cisco employee establishes DAO in order to acquire the Denver Broncos
The Broncos’ future owners might be a modest DAO established by a group of experts willing to pay the highest price ever paid for a North American sports club.
A new decentralised autonomous organisation (DAO) has been founded to gather funds to acquire the Denver Broncos of the United States National Football League for around $4 billion.
BuyTheBroncos DAO wants to provide supporters with an opportunity to own a piece of the club regardless of their financial situation. Sean O’Brien, a former Cisco employee and one of the DAO’s organisers, told CNBC on Feb. 19 that:
“The goal is to create an infrastructure that allows supporters from all walks of life to become owners of the Denver Broncos.” If it is successful, it will join the Green Bay Packers as a fan-owned NFL franchise. Fans interested in purchasing a part in the Broncos via the DAO may donate as low as $100 per share, compared to $300 per share for the Packers.
Members of the DAO who donate Ether (ETH) to the team’s acquisition will get a nonfungible token (NFT) that, according to BuyTheBroncos.com, “will act as your membership card,’ granting you access to the cooperative.”
Among BuyTheBroncos’s 630 Twitter followers are lawyers, accountants, software developers, professional athletes, and a mathematician.
The club’s trustees have stated a desire to sell the team to a new party prior to the start of the 2022 season, although there will be no buyer discount. ESPN anticipates the franchise will sell for $4 billion, the biggest price ever paid for a North American sports team.
It is unknown if NFL commissioner Roger Goodell would consent to a DAO owning and operating a franchise.
A DAO enables relatively small investors to combine their cash and make a substantial investment as a unified entity. This method was used by Constitution DAO, which sought to purchase a first-edition print of the United States Constitution. It received $47 million from 17,437 donors but fell short of the required amount at the auction.
Recently, DAOs have been utilised to boost crowdfunding activities such as Canada’s recent Freedom Convoy movement.