Purchase a share of Elan Bearnais (non-binding vibe check)

Goal : Buy a share in Elan Bearnais - Pau professional basketball team (5% to 8%)

Authors:

@giovanese & @paul both members of the International Exploration Team

WHAT IS ELAN BÉARNAIS ?

Accueil - Elan Béarnais Pau Lacq Orthez

Élan Béarnais - Wikipedia

WHY IT IS A UNIQUE OPPORTUNITY

• One of the best club in France (9 time Champion / 4 time French cup winner)
• Top professional teams usually don’t open their capital for this amount of money
• We already have key political and business links in the Pau area and also with the owner & administrators
• With this deal, Krause House comes to the rescue for the team to handle the fan token holders (400 people) and after a great experience, we could grow a large community in France.
• Elan Bearnais is one of the most known team in the french championship with a strong fan base all over the country (approx attendance by game 5 000; playoffs and events : 9 000)
• The arena is the second largest in France, dedicated 90% to basketball
• Investing at this stage makes us more powerful as the team is in rebuilding phase. Krause House will be seen as a strong partner.
• The Web3 environment is to create and to handle : freedom of creation, execution and revenues implementation. This area of action will position KH as a key partner, experience that will help have more impact and credibility for the all DAO, for next projects.
• As a board member, Krause House will also have power of decision, look on basketball operations and management impact (business & choices regarding development)
• Unique TV Rights and Streaming revenue opportunities in Europe
• Many partners of the club could be interested in partnership with Krause House

CONTEXT

Elan Béarnais - Pau Orthez have a new owner.

Counterpointe group have sold their shares : they have not demonstrate their ability to invest in and manage a pro team.

A french entrepreneur is now the majority owner of the team, which means three good things :

• Pau stay in first division Betclic Elite.
• The treasury is funded and will be 4.7 millions for the year.
• The city of Pau has resumed it subvention of 1.2 millions per year and former french minister Didier Guillaume, is part of the journey.

The new owner offers us a way to invest 100k for 5% of the majority stake (72%).

In exchange, KH will have a seat at the team board and be part of the basketball operations.

We will have also the ability to influence their marketing operations, drive the web3 tools and politics of the team.

KRAUSE HOUSE ACQUISITIONS AND AREAS TO OPERATE

• Administration : one seat at the board (total capital : 5%)
• Basketball Operations : participation in the daily basketball operations
• Marketing and Fan Engagement : generated and animated Web3 tools (NFTs campaign, discord community, fan token discussions and vote, metaverse experiences, education)
• Exposure : KH displays onsite-online, perks to animate the KH community in France and Europe.

KRAUSE HOUSE REVENUES SOURCES

• Fan Token Sales
• NFT sales
• NFT game ticket sales
• Merchandising (KH x Elan Bearnais collection)
• % of profits based on % of capital owned

Revenues and ownership will be managed by KH International SubDAO.

KRAUSE HOUSE HUMAN & TECH RESOURCES

• 1 KH Representative : Board seat and Daily operations @Giovanese
• 1 Fan Experience Manager @paul
• Tech assistance (Blockchain assistance NFTs, Fan Token)
• KH technical team : @boosh @mariolopez
• Legal assistance @MDLawyer + French law firm
• International Commitee or SubDAO assistance : European and international PR, attract non-french audience, build an international community around the team.

BUDGET

180,000 to 190,000 USDC

10,000 $KRAUSE

Budget Breakdown

• Capital acquisition : 103,000 USDC
• KH Representative : 40,000 USDC / season, paid monthly + up to 5,000 USDC envelope for representation costs (gas, travel, food) reimbursed on proof of expenses.
• Fan Experience Manager : 25,000 USDC / season, paid monthly + up to 3,000 USDC for representation costs (gas, travel, food) reimbursed on proof of expenses.
• Technical Assistance : 10,000 USDC or Krause House product team
• Legal Assistance : 2,000 USDC (MDLawyer) + 2,000 USDC for French Assistance.
• International committee assistance : 10,000 $KRAUSE

GOVERNANCE

Daily links with the Krause House Stewards

Weekly meetup-call with the Krause House Stewards

@EdgyBrah as a reference, will be our International steward at a daily base, as a reference.

A pool will be created to be part of the main decisions process (international committee and stewards)

ALSO

We are negotiating an extra percentage of the capital (2-5%) to handle the fan experience process and the web3 tools deployment. So the entire deal could be 10% of the club.

400 fans have invested in the fan token sales. For now, Elan Bearnais sees us as the best option to handle this community.

It means that we will offer them 400 KH X PAU NFTs to enter in the SubDAO community and compensate their lost.

Perks will be given by the team (free seats, merchandising, Q/A with players…etc)

Apart from that, in early 2023, the second phase will be launched. We’ll give to the SubDAO community the right to vote on minor decisions about the team (Logo, Jerseys, Activations, Spécial Events, PR tools…).

Our goal is to educate people on the first year and launch a paid Nfts next year or sooner to build a more important treasury.

Increasing our treasury will have three main advantages :

1. Possibility to increase our stake and so our power in the team.
2. Implementation of the Krause House fan ownership model.
3. Increase our financial legacy through more stake.