NBA Denies Spencer Dinwiddie’s Attempt To Tokenize His Contract; It Violates Leagues C.B.A.
Spencer Dinwiddie, Brooklyn Nets player was informed that he will not be allowed to tokenize his contract as per the New York Times report. Dinwiddie earlier had shared his plans about creating a $D8 tokens offered by his company DREAM Fan Shares that would see the player sell a portion of his contract to accredited investors in $150K or larger allocations. The player had ideas of issuing a security token on the Ethereum and raise between $4.95 million and $13.5 million.
As Dinwiddie told the sports publication :
” What better way to be invested in a player as a fan than to have some level of skin in the game. With the way mine works, if I play well in that player option year and we split the profits up the first year of my new deal, it greatly appreciates the return on this investment vehicle. “
However, those cryptocurrency dreams were dashed out by the NBA. But he hasn’t given up hope and when he was reached on Friday night by The Times, Dinwiddie said he planned to meet with league officers to try and vary their minds by giving a more elaborate explanation about the investment construct.
Dinwiddie’s set up is receiving public support: on Friday, presidential candidate Andrew Yang, who has praised blockchain in the past and recommended a federal framework for cryptocurrency regulation, wrote that he thought the set up was “genius.” He also said that he was
“disappointed the NBA is disallowing it.”
The sale of the shares of this athlete has been attempted in the past by companies like Fantex, which had already sold multiple shares to various athletes like Vernon Davis and Alshon Jeffery.
However, Dinwiddie's deal would be the first one to be issued on the public Ethereum blockchain. It is going to be interesting to see Dinwiddie as he tries to bring a change in the thoughts of the NBA, though that outcome does appear unlikely. However, future negotiation agreements between the league and the players’ union might address this issue.