After months of back-and-forth negotiations and revisions, Spencer Dinwiddie is prepared to move forward with his plan for what some are calling, “Dinwiddie Bonds,” a digital investment based on his performance.
Shams Charania, who originally broke the story back in September, says the Nets guard, who’s having a career year, has made certain concessions to NBA objections to the plan and it appears the two sides are close to an agreement.
Sources tell The Athletic that Dinwiddie had been bracing and preparing for any potential disciplinary action from the NBA when he launches on Jan. 13, but his final proposals have made tremendous changes. The NBA, who previously hired outside legal counsel in the Debevoise & Plimpton law firm for its part in the discussions with Dinwiddie, had previously informed him that his digital token couldn’t be approved.
Later, Dinwiddie himself announced the plan via Twitter. adding that he will take eight fans to Chicago for the All-Star Game...
The key change is that the investment vehicle is no longer directly tied to his three-year, $34 million contract, the final year of which is a player option, Charania reported. In short, Dinwiddie hopes to raise funds up front through his bonds, giving him more money for investments now. Then later, he would pay investors a big return when he goes for a bigger contract in 2021-2022. The collateral for the bond is a belief in his ability to perform at a high enough level that he’ll get a big deal down the road. Dinwiddie has said that by investing his bonds, fans and others will have a greater engagement with him and his game.
The league didn’t like the idea, saying that by tying things so closely to his contract it violated “third party assignment” rules in the CBA and the league’s anti-gambling provisions. At one point, it appeared the two sides were headed towards a confrontation with some speculation that the league could void his contract with the Nets. Now, compromise is in the air.
“Spencer Dinwiddie’s advisors provided us with new information regarding a modified version of their digital token idea, which we are reviewing to determine whether the updated idea is permissible under league rules,” NBA chief communications officer Mike Bass told The Athletic in a statement.
- Sources: After months of back-and-forth with NBA, Spencer Dinwiddie to launch digital investment vehicle - Shams Charania - The Athletic New York
- Spencer Dinwiddie Launching Digital Token Next Week, Discusses NBA’s Threat To Terminate His Contract - Shlomo Sprung - Forbes Sports Money