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What about the "Jay-Z" rule?

The "Jay-Z" rule is a recent addition to the ownership rules stating that a NBA team can be owned by 25 or fewer individual owners. Additionally, each owner needs to own at least 1% of the organization.

This is obviously a challenging & restrictive rule that is at odds with Krause House's vision. Even prior to this rule, the requirement was going to be convincing at least 23 of the 30 NBA owners that a DAO owned NBA team was a good idea in it's own right.

That same challenge is applicable with or without the Jay-Z rule in effect. Krause House must secure enough funds to be financially stable and we must prove that a DAO governance is suitable to be a satisfactory NBA ownership vehicle. Only then would we be eligible for a fair assessment of our ownership bid.

We must prove governance with smaller professional basketball organizations via leagues such as Euroleagues, TBT, or Big3. This will be our proof point to have a compelling argument on why our bid is a valid proposal.

Additionally, if we can prove successful governance — we have the opportunity to have an emergent business model appear: a sport team governance protocol. This could serve as an ever-lasting legacy as well as a revenue builder for our treasury to achieve our vision of buying a NBA team.