Title: Krause House To Purchase Ownership stake in Elan Bearnais Pau Basketball Team via Counterpointe Sports Group

Project Team Lead(s): clivespace#8107,  Giovanese#1856, Edgy Brah#4352

Project Team Members: Ebursa#5493

Summary:

We are recommending the creation of a Krause House Europe SubDao, that will be tasked with purchasing a percentage of the securitized token offering representing ownership of the Elan Bearnais Pau Basketball Team (EBPBT). Counterpointe Sports Group (CSG), based in Seattle, WA, currently own 72% of the club. They are selling 40% of the club at a post-sale value of 25M EURO for the club. The security token sale will raise a total 10M EURO’s from fans globally.

This securitized token offering (STO) represents the 1st ever crypto token based ownership in a professional sports franchise. We aim to make Krause House part of this historic event.

In order to participate in the EBPBT token offering a KH SubDao will need to formed to fulfill 3 important criteria, as set out by French securities regulators and the token platform administrating the offering, American firm Securitize (link).

The criteria include:

1. Governing stakeholders in the investing entity must fulfill “Know Your Customer” or “Know your Business” requirements, as set out by Securitize and French regulators.
2. Investment entity (individual or group) must pass accreditation requirements based on the country of jurisdiction of the entity making the investment
3. To secure token custody and execute associated governance rights

Funding Required:

In order to gain maximum operating influence as part of the ownership group for EBPBT we are recommending the pursuit of up to 20% ownership in the club’s Securitized Token Offering. That would require a total of 2M EURO invested in exchange for what would be an 8% ownership stake in the team. Our plan would be to scale to this level of ownership by making a series of 4 phased investments. As follows:

Phase 1: Funded by Krause House treasury, Amount: 250K EURO.

• We are also requesting a one time funding amount of $75K USDC to fund the establishment of the Krause House Europe SubDAO, compensation of its stewards, a KH appointed Assistant GM and the time, legal investment necessary to complete negotiations with CSG.

Phase 2: Funded by Krause House Europe SubDao fundraise, Amount TBD.

Phase 3: Funded by Krause House Europe SubDao fundraise, Amount TBD.

Phase 4: Funded by Krause House Europe SubDao fundraise, Amount TBD.