Spencer Dinwiddie wants investors, including fans, to be able to take part in what would be a new digital investment vehicle, what some have called “Dinwiddie Bonds.” Fans and others would invest in Dinwiddie with the collateral being his three-year, $34.4 million contract.
In essence, investors would provide Dinwiddie upfront money, then reap the rewards in the third year of his deal, which is a player option. Assuming his first two years were gang busters, Dinwiddie would opt out and go for a bigger, long term contract, rewarding his early investors.
The NBA, on the other hand, has said the plan violates the Collective Bargaining Agreement and will not approve it. Dinwiddie disagrees and plans on going forward with his plan on October 21, as he explained in a series of tweets over the weekend.
This is why we are giving them additional time as our goal is to partner.— Spencer Dinwiddie (@SDinwiddie_25) October 13, 2019
Regardless of the @NBA’s position, we will move forward. Therefore we will launch on Oct. 21st, a week from our original date and before the start of the @NBA season. (2/8)
Even with our desire to partner with the @NBA, it is not necessary. And I want to be clear, this is not and never was an “assignment” nor am I in violation of the CBA. By definition an “assignment” would give fans rights towards the Nets/NBA. (3/8)— Spencer Dinwiddie (@SDinwiddie_25) October 13, 2019
To continue to suggest anything else is deliberately misleading the public.— Spencer Dinwiddie (@SDinwiddie_25) October 13, 2019
Quite simply the market will determine the demand for this previously untapped asset class. There will be a bevy of information at their disposal and accredited investors (for the first offering) (5/8)
There’s more on Dinwiddie’s timeline, including a testy back-and-forth with Marc Stein of the Times. Bottom line, the Nets guard is saying the NBA shouldn’t be able to tell him what to do with his money.
It’s unclear how this will all work out, ... and we don’t know where the NBPA, the players union, will ultimately stand on it. Dinwiddie has said there is great interest in how things work out among fellow players. It’s also attracted a lot of interest among those who follow crypto currency.
- Spencer Dinwiddie announces date for investment in his contract - Dane Delgado - NBC Sports