Operation “Bring Home the Bacon” v2 Stream Request

Note: To simplify things, this proposal voids the original proposal from December. Our goal is to make this really simple. This proposal is strictly for continued due diligence, exploration, and networking centered around finding some sort of transaction or partnership for the Ball Hogs.

Context & Purpose of the Stream:

In Spring 2022, Krause House purchased all 25 Fire NFTs representing ownership of the BIG3’s Ball Hogs. Under the Terms of Sale, Fire Tier owners are entitled to 40% of the net sale proceeds from any future sale of the team.

In 2024, the BIG3 announced a home city-based model and began selling expansion teams for $10 million each, with existing teams like the Ball Hogs rumored to be valued at $15 million or more. This represents a potential 12x return on our $500k initial investment.

By securing additional resources, Krause House can remain an active participant in shaping the outcome of this investment.

This proposal requests funding to continue exploring a potential transaction involving Krause House DAO’s potential 40% stake in the BIG3’s Ball Hogs. This stream builds upon previous efforts while refining our approach to ensure it reflects both community feedback and current priorities. By securing additional resources, Krause House can remain proactive in negotiations and investor discussions, free from pre-existing conditions that may limit flexibility or complicate external negotiations.

Compensation:

• $4,000 USDC/mo apiece
• $4,000 KRAUSE/mo apiece

Duration: 2 months

• First distribution: 02/01/2025
• Final distribution: 03/01/2025
• After the 2nd month, Bayesian Baller and Uncle Jon will have the option to apply for more funding on a short-term basis. In other words, they will put up a new Snapshot with their latest progress reports and will be subject to community approval for stream extension.

Legal Budget:

• Up to $10,000 USDC total
• Stewards to approve transactions

Scope of Work

This proposal will continue to focus on the following areas:

1. Investor Engagement & Market Analysis:

Continued outreach to potential buyers, private equity firms, and strategic partners, as well as research into optimal transaction structures.

2. BIG3 Negotiation & Representation:

Maintaining close communication with BIG3 leadership to ensure Krause House’s interests are protected in any sale, negotiation, or partnership agreement.

What We Have Accomplished & Our Plan for the Next Two Months

Over the past two months, we built a strong foundation by researching and working with the BIG3 to create a detailed investor deck and engaging hype video. These materials highlight the Ball Hogs and BIG3's unique investment opportunity, featuring financial data, sports industry valuations, and the league's turnkey ownership model. With these key assets nearing completion, we can then move forward with targeted investor outreach.

For the next two months, we'll focus on three goals. First, we'll expand our investor meetings, tapping into our network of high-net-worth individuals and sports enthusiasts—particularly in Bayesian's hometown of St. Louis, where we've already seen positive interest. Second, we'll partner with the BIG3 to obtain the latest financial and operational data, ensuring we provide investors with current, compelling information. Third, we'll launch a strategic marketing campaign that combines direct meetings with digital outreach to increase visibility. Through these coordinated efforts, we aim to transform our current momentum into concrete investor commitments and advance both the Ball Hogs and the BIG3.

Deliverables for This Proposal

• Finalize the investor pitch deck and hype video.
• Build a landing page that allows investors to easily view the content and express potential interest.
• Continued discussion, meetings, and outreach with potential investors.
• Collaboration with local news in potential market city to raise awareness of the goal to bring basketball to x city.
• Updates to KH community on progress.
• Ongoing networking with new potential groups and the Big3.

Opportunity:

This proposal presents three key opportunities for Krause House:

1. Financial Return via Sale:

If the Ball Hogs are sold for $15 million, Krause House’s 40% share could result in $6 million, greatly enhancing the DAO’s runway and potential to fund new initiatives.

2. Partnership and Continued Management:

Krause House could negotiate a role in managing the Ball Hogs post-sale, showcasing the DAO’s strengths in fan engagement and decentralized sports management.

3. Expansion Beyond the Ball Hogs:

By working with BIG3 investor groups, Krause House can explore potential management or consulting opportunities with other teams and leagues, broadening its influence and revenue streams.

Krause House’s Value Proposition:

As a decentralized organization, Krause House has shown the value of fan-led sports management through its work with the Ball Hogs. This stream will continue that mission, positioning the DAO as a credible partner in the sports industry while protecting its investment in the BIG3.