In the high-stakes world of sports, strategy is everything. Traditionally, game plans and tactical decisions have been the exclusive domain of coaches and analysts, decided behind closed doors.
But imagine a scenario where thousands of passionate fans have a direct say in those crucial calls. Thanks to the rise of decentralized autonomous organizations (DAOs), this once-unthinkable concept is rapidly becoming reality.
Ben Notaris is a high school senior and the author of #OwnTheGame: Sports DAOs and Beyond.
As a lifelong sports fanatic and high school athlete, I've always been fascinated by the strategies that underpin victory. I have spent endless hours dissecting game footage, debating player trades, and second-guessing coaching decisions from the comfort of my armchair.
As I write in my book:
Overlooking hall-of-fame caliber talents before they blossomed are only a few of the infamous blunders fans have excruciatingly criticized throughout sports history. It's easy to think you’re better, you wouldn’t have missed that opportunity, but you won’t ever have the chance to prove it if you’re not a general manager, let alone a billionaire owner ... UNTIL NOW!
When I stumbled on the concept of DAOs in late 2022, I was immediately captivated by their potential to transform the fan experience. The idea of fans holding real power, not just in the stands but in the boardroom, felt like a game-changer. The prospect of fans becoming active participants in their teams' strategic decisions sparked a fire in me, propelling me to delve deeper into this burgeoning field.
Read more: How Sports DAOs Can Offer Fans a Piece of the Action
The Democratization of Sports Strategy
DAOs, built on blockchain technology, are communities where members who hold tokens can vote on key decisions. In the context of sports, this could mean anything from pre-game strategies to real-time play calls during a match.
Imagine a world where fans of an NFL team could vote on whether to go for it on fourth down, or basketball fans could decide when to implement a full-court press. This level of involvement could transform the sports viewing experience, making every fan feel genuinely involved.
The concept of leveraging (in this case, collective) intelligence to gain a competitive edge is not entirely new, even in sports. The Oakland A's, as chronicled in Michael Lewis' book and the film adaption of Moneyball, famously used data analytics to challenge traditional scouting methods and build a winning team on a shoestring budget.
DAOs take this idea to the next level, harnessing the wisdom of the crowd—thousands of passionate fans who live and breathe the game.
"DAOs are power equalizers offering true fractional ownership,” I argue in the book. They “empower members with any tangible stake… to enjoy their participation.”
My research, which involved interviews with DAO founders and members, suggests that crowdsourced strategies can introduce a diversity of perspectives, leading to more innovative and adaptable game plans. They can also boost fan engagement and loyalty, as fans feel a deeper connection to the team when they have a direct stake in its success.
Read more: From DOH! to DAO: The Rise of Decentralized Organizations
Fan-Controlled Football and Beyond
Fan-Controlled Football (FCF) is a prime example of this shift. In FCF, a league that plays during the NFL's off season, fans use a DAO-like model to call plays in real time during games. Using a mobile app, they vote on offensive plays via blockchain, with the majority decision relayed to the players on the field. Though the league has been on pause the past two years due to a lack of high-profile players who attract a large enough audience, it looks to return strong in 2025.
During my research, I observed how, by tapping into the collective wisdom of thousands of fans, FCF demonstrates how crowdsourced strategy can add a new level of excitement and unpredictability to sports.
FCF is the tip of the iceberg. DAOs are making waves across a variety of sports.
Krause House, though its NBA dreams were put on hold, acquired a team in rapper Ice Cube's Big3 basketball league, showcasing the potential for fan-owned teams at a professional level.
LinksDAO, a golf-centric DAO, made headlines by purchasing a Scottish golf course, opening up access to a traditionally exclusive sport.
The audacious BuyTheBroncos DAO, though unsuccessful, proved that fans are willing to mobilize significant capital to pursue ownership of their beloved teams.
Other DAOs are pushing the boundaries of fan participation in strategy even further. For instance, the Veloce metaverse racing platform allows token holders to manage a virtual racing team, influencing decisions like car upgrades and driver selections. MotorDAO, meanwhile, is bringing this concept to life by creating a community-owned racing team.
Karate Combat, the world’s largest DAO, creates immersive CGI experiences for virtual fans, who tune into Up Only Gaming, a decentralized app, to make predictions on the league's real-world fights.
Read more: Building a Sports DAO: 4 Lessons From LinksDAO
The Collaborative Future of Sports
"The DAO mechanism allows for voting on critical decisions; it gives everyone a say," I write in my book. "Sports DAOs have the potential to democratize sports and empower communities like never before."
As DAOs continue to evolve, we might see a future where professional sports teams operate as full or hybrid DAOs, with fans making decisions on critical transactions from player acquisitions to coaching hires.
What’s more, the integration of DAOs with artificial intelligence and data analytics could create a powerful new model in sports strategy, combining fan input with objective data to make the best possible decisions.
The power of the crowd is set to change the game forever. As an aspiring economist, I'm excited to be part of this revolution.
Read more: Crypto Enthusiasts Forming DAO to Buy Denver Broncos NFL Team
Note: The views expressed in this column are those of the author and do not necessarily reflect those of CoinDesk, Inc. or its owners and affiliates.