Dinwiddie planned to use his three-year contract of $ 34.4 million for investment opportunities through crypto tokens.
No approval from NBA
Unfortunately for the basketball player, the NBA, his employer, informed him that he cannot borrow his contract for this. A representative of the NBA has informed him that he cannot convert his contract into a digital, public investment.
Last week, Dinwiddie announced in The Athletic that he was planning to issue “$ SD8” tokens. The framework would be built by his company DREAM Fan Shares. This way, investors can buy in to their three-year NBA contract.
The news tonight is disappointing because all it does is inspire #FUD in the birth of a previously unrealized asset class under the assumption that I am breaking a rule that I am leg clear I am not breaking in multiple conversations.
– Spencer Dinwiddie (@ SDinwiddie_25) September 27, 2019
His next contract must be better
You could also translate the construction into a long position on the course of his basketball career. The guess is whether after the second year of his current contract, he will be offered a better and more lucrative deal.
And if you follow the NBA a little bit, then you know that that’s a good bet, if Dinwiddie doesn’t get injured. He has started to play better over the past two seasons, and that also translates to his statistics. Given his production (number of points / rebounds / assists per match and a thousand other metrics) his contract is seen as a bargain. It is therefore quite possible that his next contract will be even better.
Techguy with a jumper
On Twitter He calls himself a tech guy with a jumper: someone whose passion lies with technology but who happens to be able to play basketball well.
By the way, the token he has in mind is a so-called security token. You also receive interest. The plan is to run his token on the Ethereum blockchain (ERC-20). He wants to raise between 4.95 million and 13.5 million dollars. The minimum investment is $ 150,000.
Skin in the game
“There is no better way to invest in a player as a fan than to have a skin in the game,” Dinwiddie told The Athletic. “With the way mine works, if I play well in the year before my current contract expires, we’ll split the profit from the first year of my new deal.”
The NBA has not yet publicly responded to this issue. Dinwiddie plans to convince the NBA of its investment concept by visiting the head office again.
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