Well at least now it has a name. Spencer Dinwiddie’s investment vehicle will be known as “SD8 coins” .., and despite NBA continuing disapproval, he plans to start selling them soon, maybe Monday.
According to Shlomo Sprung, writing for Fobes, here’s how the unconventional plan will work.
On Monday, the 26-year-old will launch his blockchain-based investment platform DREAM Fan Shares, where he’ll sell 90 bond-like SD8 coins— what DREAM is calling Professional Athlete Investment Tokens— that will allow him to collect a large chunk of his guaranteed three-year, $34 million contract up front.
While the NBA thinks the plan is a violation of the CBA, Dinwiddie says, essentially, it’s his money, his contract. The Nets guard will meet again with the NBA in New York Monday, hoping to avoid controversy. The meeting, he concedes, could delay things.
“The league has been trying to talk me out of it on a very consistent basis,” he told Sprung. “To my knowledge, they’re also retaining legal counsel to try to see what it is I’m doing.”
In fact, Dinwiddie told Sprung that if his plan is successful over the first year, other athletes and entertainers have already expressed interest in converting parts of their contracts in a similar manner.
He went to great lengths in explaining how it will work and how investors, some of who he hopes will be fans seeking “some skin in the game,” will be protected.
Purchase of these SD8 coins on the FanShares websitewill be limited to qualified accredited investors who have passed various SEC and legal standards who will pony up a minimum $150,000 payment. Due to SEC regulations, the SD8 coins can’t be sold or traded for a year.
Dinwiddie described the meeting to Mollie Walker of the Post as a “good faith sit down,” and conceded it could slow his rollout by “a couple days or a week or whatever it is.”
Whenever it all goes well and he can sell the SD8 coins, Dinwiddie will receive an instant $13.5 million payment, more than the $10.6 million the Nets will pay him for the 2019-2020 season.
Dinwiddie would then pay his investors mortgage-style principal and interest, with the possibility of a windfall on his player option year, 2021-22 when he would be able to return to free agency and get an even bigger deal, assuming his strong play on the court continues and he remains healthy.
Dinwiddie also gave Sprung a preview of what he will tell the NBA lawyers.
“The (NBA) jurisdiction doesn’t go further than once they pay me, it’s over,” Dinwiddie said, comparing what he’s doing to buying a home or a car ... or a more conventional investment. “I’m my own man. I can do what I want. I am free to use my money the way I see fit. We’ve had multiple meetings with them, and besides them not liking a little bit of loss of control, legally there’s not much they can do about it.”
- Spencer Dinwiddie Discusses Digital Tokenization Plan, Happening Against The NBA’s Wishes - Shlomo Sprung - Forbes
- Spencer Dinwiddie ready for NBA sit-down over contract beef - Mollie Walker - New York Post
- How investing $150K in Spencer Dinwiddie would actually work - Kevin Arnowitz - ESPN