Spencer Dinwiddie Turned Part Of His Brand New Contract Into His Own Form Of Currency Called A Dinwiddie Bond

(The Athletic) – Brooklyn Nets guard Spencer Dinwiddie is planning to turn his contract into a digital investment vehicle and receive an upfront lump payment, The Athletic has learned, an unprecedented move for an NBA player.

Dinwiddie, according to multiple sources, is starting his own company to securitize his NBA contract in the form of a digital token as he begins a three-year, $34.36 million extension with the Nets. It’s unclear how much of the contract amount he wants to raise upfront, but it would likely be less than the total amount, according to sources.

So how exactly would this work?

In a securitization, the borrower gives up some future income in return for a smaller lump sum payment. But the borrower, in this case Dinwiddie, then has more money to immediately invest than he otherwise would.

A token is a digital currency term. The bond exists in the digital currency world. Instead of buying the bond from a broker, it is through a token.

According to sources, this Dinwiddie bond would pay investors principal back and interest, which would be covered by what the Nets owe him.

Alright so I’ll be the first to admit. I have no idea what any of this shit is when it comes to digital currency. Crypto, Bitcoin, digital investment vehicles it doesn’t matter, that shit goes right over my head every single time. You already lost me at this token talk. I’ve come to terms with the fact that my future will not consist of getting rich one day on digital currency. For those who have the brainpower to understand all that shit then take advantage and make a ton of money, congratulations. It probably really is the future but I am far too lazy to do the research it most likely requires so I’m good just living with whatever society agrees upon.

Now having said that, what a move by Spencer Dinwiddie. This isn’t something entirely new to the sports world, Arian Foster did shit like this, as did Frank Thomas. NBA contracts are about as ironclad as they come in terms of guaranteed money, and the Nets certainly aren’t going to be looking for a way to void Dinwiddie’s deal anytime soon so it makes some sense. Now what happens if he opts out of his player option in a few years, well who the fuck knows. Again, not a finance guy. If this actually works out, think of the implications moving forward. It honestly could change the way free agency works. Who’s to say someone connected to a team won’t buy a shit ton of a player’s shares as a way to get them to join their team in free agency? Could this all be a way to find a path to circumvent the salary cap? I have no idea but I’m down to find out. Let’s get nuts.

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I’m 100% not going to take the time to look up stocks and play the stock market but I’ll sure as shit invest in NBA players and their future earnings. I already invest every other aspect of my life anyway what’s the difference. Imagine you buy a shit ton of stock at a great price for a late second round pick and then that guy turns out to be Jokic? Shit, you see these extensions being handed out right now? Terry Rozier just made $60M. Malcolm Brogdon makes $20M a year, there’s money to be had by playing this game one day.

I have no idea if this is a good decision or not, but I know as more and more teams start to fuck with Bitcoin (Mavs and Kings), this sort of shit is probably the future of the NBA.

P.S.

Obligatory