As cryptocurrency becomes increasingly popular and more widely accepted, a new group is reportedly making an effort to raise $4 billion in a crypto wallet to buy the Denver Broncos.
Denver’s NFL team officially went up for sale this offseason with multiple groups planning to be involved in the bidding war. While the franchise value is set at $3.75 billion, many around the league expect the Broncos to sell for at least $4 billion.
At the early stages of the bidding process, only a few names have emerged. Peyton Manning and John Elway will be competing against one another as part of larger groups with huge investors. Meanwhile, Los Angeles billionaire Alec Gores and Entertainment Studios CEO Byron Allen will also be vying for Broncos’ ownership.
According to CNBC’s MacKenzie Sigalos, a new group is entering the mix. Businessman Sean O’Brien, who helped created the decentralized autonomous organization (DAO) titled “Buy the Broncos” is reportedly aiming to raise $4 billion with the help of attorneys, accountants, athletes and software developers.
“We know it sounds a bit crazy, but it’s also a bit badass. The purpose essentially is to establish an infrastructure so that fans from all walks of life can be owners of the Denver Broncos.”Sean O’Brien on the group effort to buy Denver Broncos with cryptocurrency, via CNBC
The final sale of the Broncos, which could be approved by NFL owners before the 2022 season, will set the record for the highest price tag ever for a North American professional team.
As Sigalos notes, DAOs are becoming an increasingly popular way for those with money to buy real assets as a collective group. If the crowdfunding is successful, this group could put together the kind of financial offer that would be enticing. Importantly, Colorado Gov. Jared Polis recently announced that the state could accept cryptocurrencies for tax payments by the summer.
A crowd-funded group would allow some NFL fans to become part-owners of the Broncos. Considering the Green Bay Packers just raised $64.5 million by selling common stock to fans, there is clearly some appeal. With that said, there are roadblocks that might prevent all of this from happening.
Any sale of an NFL team requires a majority of support from current franchise owners. In terms of the NFL’s interest in cryptocurrency, the league reportedly lobbied the SEC in 2021 about issues regarding “blockchain technology”, per CNBC.
Receiving a majority vote from the NFL owners will be challenging, especially if the party buying the Denver Broncos is hundreds of people sourcing crypto funds together. The league would likely prefer one single majority owner who can cover the costs of running a team in more traditional ways. As a result, it would be a surprise if this effort is successful.