International Franchise Ownership Exploration | Phase 2

---

Team Lead: clivespace#8107,

Project Team Members: Boosh#8092, @Murray, @funda, @Ebursa, @Giovanese, @Edgy Brah, @Gregger @teelon @Jivado

---

Compensation:

1. 10,000 USDC to Fund Legal Council
2. 26,000 $KRAUSE to Fund This Team

Allocation of Funds (26,000 $KRAUSE)

1. Project Leads: 12,000 $KRAUSE
   In Phase 2 our committee will have 4 assigned roles with preset compensation. Re-distribution within the committee will be encouraged.
   • Project Lead (3000 $KRAUSE)
   • Committee Operations & Communications Lead (3000 $KRAUSE)
   • Business Entity Structure & Formation Lead (3000 $KRAUSE)
   • European Franchise Opportunity Lead (3000 $KRAUSE)
2. Other Contributors 14,000 $KRAUSE
   • Unused funds will be distributed to committee members via Coordinape.

Funding Schedule

1. On Project Approval:
   1. $10,000 USDC to fund external legal counsel.
   2. 6000 $KRAUSE
2. 1 Month
   1. 10,000 $KRAUSE
3. Project Completion (Expected: 2 months)
   1. 10,000 $KRAUSE

---

Value Proposition

1. International franchise ownership will be an important asset in onboarding new fans to Krause House, expanding our community of investors/token holders and will allow us to offer unique experiences to Krause House community members in cities around the world.
2. Once established a global basketball fan following will have a vested interest in seeing Krause House succeed on our ultimate goal of “Buying an NBA team” #WAGBAT.

Deliverables

At the completion of Phase 2 (~60 days), we aim to:

1. Form a new legal entity (Possibly a SubDAO) to address regulatory concerns related to Know Your Customer/Know Your Business securities regulations, and to address league and franchise concerns related to how our group will manage governance post investment as voting shareholders or via influence within the team's management office.
2. Outline and Establish a business model that will allow us to execute Web3 and Decentralized Sports Operations / Fan Engagement related work for franchises globally by leveraging the capabilities of existing Krause House DAO committees and community members.
3. Negotiate & Recommend a path to acquire ownership stakes in international professional basketball franchises. In exchange for our ownership stake, our committee will also negotiate a path to secure rights to execute web3, NFT, and DSO programs where applicable.

What are the Goals of the International League Exploration Committee?

Our goals for Phase 2 are more tuned now that we have the experience of the last 3 months to draw from.

• Going forward we aim to identify franchise ownership opportunities for Krause House in partnership with forward-thinking league offices, private equity & sources of capital and existing franchise managers that offer (1) Financial return for Krause House, and (2) the ability to execute our form of decentralized sports operations, web3, NFT, live streaming and metaverse programs.
• We’ve seen broad interest globally in our operating model, web3 fundraising capabilities and alignment with our extended Krause House community. Partnering with the right international franchises represents an opportunity to position Krause House DAO as the leading community of basketball fans worldwide and the best place for fans who are interested in tokenized fan based team ownership to join in.

Previous Work: Phase 1 Recap:

Our Phase 2 campaign is based on learnings outlined in our Phase 1 Report. In Phase 1 of the International League and Franchise Committee (ILEC) exploration we learned.

1. International basketball teams and ownership groups are open to investment but lack strategies for incorporating tokenized fan ownership, web3 and decentralized sports operations.
2. Leagues and front office personnel remain skeptical regarding the governance and regulatory implications that come with accepting investment from a DAO.
3. We encountered several private equity groups attempting to execute a similar strategy to Krause House. Experimenting with the ownership of an international pro-basketball franchise with a stated goal of NBA team ownership. These groups may be potential partners as we move forward.

Why Will we Succeed?

Our committee, currently at 10 people across 6 time zones and includes:

• An experienced former international basketball league executive,

• Former players (Professionals and NCAA D1)

• A Sports Agent

• A Marketing leader at one of the world’s leading sneaker companies, and

• 2 Finance execs with experience raising capital from global investors and investing in technology based businesses

Collectively, we’ve been able to credibly engage with the top managers, advisors and investors in international basketball. See Phase 1 Report. In our Phase 1 exploration we established Krause House as a strong credible brand in the international basketball community. Executing on the goal of purchasing ownership stakes in one or eventually several international franchises, while raising the profile of Krause House internationally and in the US, seems entirely within our reach.