Brooklyn Nets Point Guard Looks To Break New Ground In NBA With Tokenized Contract
Have you ever wanted to invest in an NBA player’s future? It might be possible in the upcoming season.
Spencer Dinwiddie, a Brooklyn Nets point guard, is planning to securitize his NBA contract in the form of a digital token asset tied to his three-year, $34 million contract extension.
The decision would allow Dinwiddie to raise money upfront, as opposed to waiting three years to be paid out in full, and investors would be paid principal plus interest over the course of the deal.
Dinwiddie is planning to start his own company to sell the offering and make investments upon fundraising, according to Fox Business.
“This is a newer concept utilizing the power of blockchain and crypto and bypassing a third-party intermediary. We will see how it goes and if it’s successful — and whether the league has an opinion on [whether] this is something that should be allowed under the current collective bargaining agreement,” sports attorney Darren Heitner told Benzinga.
Little else is known about the extent of the offer as well as what Dinwiddie plans to do with the money he raises. The move is certainly not without risk, and Heitner recommends potential investors do proper due diligence before investing.
“To an extent I believe he is breaking new ground, and I hope he is resting on the advice of his advisors, but I certainly wouldn’t advise this route to any of my clients.”
Dinwiddie is certainly not without competition on the court either, after his team signed point guards Kyrie Irving and rookie phenom Jaylen Hands in the offseason.
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