- The Krause House is a crypto organization trying to raise money through tokens to buy an NBA team.
- Founder Flex Chapman said the group would vote on team decisions, from uniform designs to hiring.
- He said it’s a “way to level up where people can actually participate in the league” they love.
For Flex Chapman, simply watching basketball isn’t enough. He wants a world where fans have a say in everything, from voting on uniform designs to approving hiring decisions.
Basically, the software engineer wants to buy an NBA team — using crypto.
“It’s the purest form of win-win that a league like the NBA can have, which has so much power and have done all the right things,” Chapman said. “This is that way to level up where people can actually participate in the league that they loved for decades.”
Chapman, a pseudonym he goes by in crypto circles, is trying to bring the NBA into Web3 with his organization, the Krause House, founded this past summer. The group plans to replace the usual model of a single billionaire owning a team. Instead, its 1,200 members would collectively buy and run an NBA team.
It’s the latest in a series of experiments with decentralized autonomous organizations. DAO is a fancy name for how groups can organize using blockchain technology. Members buy into the group through tokens, and then they receive voting power based on their holdings.
As more people buy tokens, these groups amass a formidable bank account — money they creatively deploy to bring the world into the “metaverse.” Some of the more outlandish examples: ConstitutionDAO is trying to buy the Constitution (yes, really), MadRealitiesDAO is creating a crypto dating show, and PleasrDAO bought an unreleased Wu-Tang Clan album.
Of course, the Wu-Tang album cost $4 million, whereas an NBA team costs billions. Chapman said minority ownership was also an option, lowering the price tag to millions.
It may seem far-fetched, but with seemingly infinite amounts of capital pouring into crypto, no idea is off-limits.
The plan started in the summer and quickly became Chapman’s full-time job. He wouldn’t name names, but he hinted that the organization included NBA agents and former NBA players.
The Krause House has yet to launch its token — it’s expected to go on sale next Friday — but Chapman didn’t think capital would be the issue. He was more concerned with proving to the NBA that the members aren’t “a bunch of guys in a basement rallying together to disrupt the NBA.” Rather, they’re dedicated fans who are “actually capable of doing this.”
It may help that the NBA has already dipped into crypto, partnering with Dapper Labs to create the wildly popular NBA Top Shot, where sports fans buy game moments turned into non-fungible tokens.
Chapman knew it would still take some convincing, and that the Krause House’s ultimate goal was a long-term play, but he believed it would create a better model for both the NBA and fans alike.
“Team ownership shouldn’t be limited to a handful of billionaires,” he wrote in the post announcing the idea. “But rather a movement of individuals that want to be a part of the greatest professional league in the world.”