NBA not allowing Spencer Dinwiddie to use contract as digital investment
The NBA will not allow Spencer Dinwiddie to follow through on his plan to use his playing contract with the Brooklyn Nets as a digital investment vehicle.
A report in The Athletic two weeks ago shared Dinwiddie’s desire to allow people to invest in him and his company by buying shares of a digital blockchain currency. The “$SD8” token was going to be offered by his company DREAM Fan Shares with a minimum $150,000 investment. It would be backed by his three-year, $34 million contract from the Nets. He was planning to essentially offer a highly-rated bond to investors, considering that NBA contracts are guaranteed.
However, the NBA will not allow it due to rules in the Collective Bargaining Agreement, the New York Times’ Marc Stein reports.
“According to recent reports, Spencer Dinwiddie intends to sell investors a ‘tokenized security’ that will be backed by his player contract. The described arrangement is prohibited by the C.B.A., which provides that ‘no player shall assign or otherwise transfer to any third party his right to receive compensation from the team under his uniform player contract.’ ”
So there you have it. Maybe Dinwiddie wasn’t a pioneer in the field, but rather nobody else had done it because it’s not allowed by the CBA.
The 26-year-old guard averaged 16.8 points and 4.6 assists in 68 regular season games with the Nets last year.