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Tuesday, October 22, 2019

Articles tagged: Spencer Dinwiddie

NBA not allowing Spencer Dinwiddie to use contract as digital investment

Spencer Dinwiddie

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.

Nets’ Spencer Dinwiddie planning radical investment move with his contract

Spencer Dinwiddie

Brooklyn Nets guard Spencer Dinwiddie calls himself “a tech guy with a jumper” and aims to prove that with his contract.

The 26-year-old signed a 3-year, $34 million contract in December that begins in the upcoming season. He is scheduled to earn $10.6 million in the upcoming season, $11.4 million the following season, and $12.3 million the year after that.

Rather than be paid on that schedule, Dinwiddie is looking to raise money from investors immediately by using his playing contract as collateral.

According to The Athletic’s Shams Charania, Dinwiddie is looking to raise money through digital tokens, which would be like buying bonds that are backed by Dinwiddie’s $34 million contract. He could create a digital smart contract that would give investors tokens and pay them out according to the contract.

Say Dinwiddie raises $30 million now through this method. He could use that $30 million and invest it in a way he chooses. Based on his Twitter, it seems he might want to invest in bitcoin.

Why would this be in Dinwiddie’s interest?

Say he raises $30 million up front by promising a two percent annual return or so the next three years (the length of his Nets contract). He could use that money to buy $30 million in bitcoin, or invest part in cryptocurrency, part in stocks, or whatever. He would be betting that the value of bitcoin and/or his other investments will rise over the next few years. If he gains a 10 percent annualized return, he would end up with just shy of $40 million. Comparatively, he would have been paid $34 million over that time period had he stuck to his contract, though he would have been able to invest his earnings each time he receives a pay check.

Why would someone invest in Dinwiddie by buying a token?

Dinwiddie’s NBA contract is guaranteed. Absent some horrific circumstance where the contract becomes voided, someone could buy a token in Dinwiddie and maybe receive a greater return than they would from a traditional savings account or short-term bond. Investing in an NBA contract is a pretty sure thing.

This is not unlike a scenario where someone who wins the lottery is offered the choice of a lump sum payment up front for less money, or payment installations in the future for smaller amounts. Dinwiddie would be choosing the lump sum option. His “lottery” would be formed by offering digital tokens. Token owners would be paid back with the money Dinwiddie is owed by the Nets. How well this works out for Dinwiddie depends on his ability to invest. He clearly has an appetite for risk.

Spencer Dinwiddie makes bold claim about potential Nets-Knicks rivalry

Spencer Dinwiddie

The New York Knicks have been linked to big offseason moves, with chatter of Kevin Durant and Kyrie Irving potentially being on their way to the Big Apple. But there’s another team in the city that made the playoffs this season.

In fact, Brooklyn Nets guard Spencer Dinwiddie is so confident in his team’s staying power, he thinks he’d still be playing on the best basketball team in New York even if the Knicks make those big moves.

The Nets know the media reality of New York and how the Knicks will always grab the bulk of the attention. Their players have a bit of a chip on their shoulder, though, and seem intent to show that this year’s successes are only the beginning regardless of what the Knicks are up to.

Spencer Dinwiddie ‘close’ to return to Nets

Spencer Dinwiddie

The Brooklyn Nets are getting close to welcoming back another key figure.

Coach Kenny Atkinson said Wednesday that guard Spencer Dinwiddie is nearing a return after a month on the sidelines after undergoing thumb surgery.

Dinwiddie had primarily been used as a reserve before his injury, coming off the bench in 45 of his 49 appearances. He was a key reserve, however, averaging over 17 points per game and making him the team’s second-leading scorer.

The Nets also just got guard Caris LeVert back, and are well-positioned down the stretch to solidify their playoff positioning. They’re a team worth watching down the stretch.

Report: Nets’ Spencer Dinwiddie to undergo thumb surgery Monday

Spencer Dinwiddie

Despite his best efforts to avoid it, Brooklyn Nets guard Spencer Dinwiddie is set to go under the knife Monday to repair torn ligaments in his right thumb.

According to Adrian Wojnarowski of ESPN, Dinwiddie will undergo surgery on Monday, which is likely to keep him out of action for around a month.

Dinwiddie had apparently been thinking about putting surgery off until the offseason, but to no avail. The good news is with the All-Star break less than a month away, it’s possible that the number of games the Nets’ guard ends up missing may not be as large as it might be otherwise, but it’s an undeniable blow to Brooklyn and their momentum in the Eastern Conference playoff race.

Spencer Dinwiddie may try to play through injury, postpone surgery

Spencer Dinwiddie

Spencer Dinwiddie has a finger injury but may try to play through it.

The Brooklyn Nets guard has a right thumb injury and has been receiving medical evaluations. A report this week said he was likely facing a 4-6 week injury timetable, but Brooklyn’s coach says Dinwiddie may delay surgery.

Though Dinwiddie trying to tough out the injury would be impressive, it would not be unprecedented. Kobe Bryant for one was famous for playing through finger injuries and even advised Steph Curry two years ago on how to do so. If Dinwiddie were to do so, it would be painful but perhaps worth it as the Nets try to stay in the playoff race.

Brooklyn is 26-23 and in the sixth spot in the East.

Report: Spencer Dinwiddie may miss 4-6 weeks with torn ligaments in finger

Spencer Dinwiddie

Spencer Dinwiddie is catching a bad break amid an excellent season.

Dinwiddie could miss 4-6 weeks with a finger injury, according to Caron Butler. Butler wrote on Twitter that Dinwiddie has torn ligaments in his finger and will receive two other evaluations to confirm the diagnosis. The expectation for now is that Dinwiddie could miss 4-6 weeks.

The former second-round pick is having a breakout season for the Brooklyn Nets. He’s averaging 17.2 points and 5.0 assists per game for the Nets, who are 26-23. Dinwiddie, D’Angelo Russell and Jarrett Allen are among the top players for the Nets, who are firmly in the playoff mix in the East.

The Nets did confirm that Dinwiddie is being evaluated for a thumb injury.