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A DAO tries to raise $4 billion to buy a football team

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A Decentralized Autonomous Organization (DAO) is trying to raise more than $4 billion to buy the Denver Broncos, a team in the first division of American football. The team managers announced that they want to sell the club during this season. The DAO is made up of a group of lawyers, mathematicians and professional athletes. 

DAO to buy football equipment

 

The initiative to buy the Denver Broncos through a DAO is known as BuyTheBroncos. If carried out, it could become the largest purchase in the history of American sports. As indicated on their website, the goal is clear: to buy the Denver Broncos as a community and leave ownership of the team in the hands of the fans. The DAO will function as an online cooperative in which all decisions related to governance, operations and leadership will be made by the fans. In fact, anyone will be able to take part in this DAO when it launches the first week of March. In the case of not achieving the goal, users will be able to get their money back.

Sean O’Brien, one of the main promoters of the DAO, underlined in an interview with CNBC the objective of the DAO. “The purpose is to establish an infrastructure so that all fans can own the Denver Broncos,” O’Brien added.

The initiative also has the support of Jared Polis, Governor of Colorado, where the Denver Broncos come from. Polis, has always been in favor of cryptocurrencies. In fact, he just announced that he plans to accept crypto for taxes in Colorado this summer.

The simpsons already predicted it

 

On the possibility that a DAO bought the state equipment, the governor stressed that he would be “delighted” and that he would be excited to be part of the project. “The challenge will require a lot of money… but you know what, if your imagination is big enough, it can happen. And whatever I can do to make this happen, I’ll be happy to do it,” Polis said at a conference in Denver last Friday.

 

Like the Trump presidency, the well-known animated series The Simpsons already predicted the purchase of the Denver Broncos by a DAO. In the second chapter of the eighth season, broadcast in 1996, Homer Simpson receives the Denver Broncos team as a gift. Homer becomes owner of the club and the team begins to train in the garden of his house. In fact, the DAO Twitter header refers to this chapter, from which the main promoters of the project could have taken the idea.

 

DAO for Cádiz CF

 

In Spain, the first attempt to purchase a La Liga football club with a DAO has been made through MagicoDAO. The DAO is trying to raise capital to buy Cádiz CF Its promoters are Carlos Delgado, former director of operations at Footers, and Diego Arroyo, founder of the fashion brand Laagam. So far, more than 300 users have joined the project.

 

This type of organization is becoming more and more common and 2022 could be the year of its explosion. Currently, there are more than 100 DAOs, controlling nearly $10 trillion in assets, according to data from  Coin98. Last November, a DAO managed to raise $46 million to try to buy a manuscript of the United States Constitution.

A DAO is an organization controlled by smart contracts, which due to their characteristics of transparency and immutability, are in charge of establishing the rules of the organization. In this way, its members know in advance the rules of the community and know that these cannot be modified in the future, as they are registered in the Blockchain.

 

For small investors

The applications of DAOs are almost infinite, since they allow cooperation between parties that do not know each other to be organized in a decentralized way. In fact, their main advantage is that they reduce entry barriers for small investors who want to participate in large projects. In the case of a soccer team, thousands of users can own the club by buying a portion of the DAO tokens. Tokens that subsequently give buyers voting rights.

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