Pro Basketball Star Tokenises Own NBA Contract

Pro Basketball Star Tokenises Own NBA Contract

According to sporting media outlet The Athletic, Spencer Dinwiddie, a professional basketball player with the Brooklyn Nets, is securitising his National Basketball Association (NBA) contract by creating his own digital token. Dinwiddie has recently agreed a $34.36 million three year extension to his contract but it is unknown at this stage if the tokenisation will involve the full amount.

The Nets Daily suggests that there are still aspects of the deal to be finalised – such as how much of the contract would be set aside and how it positions within the established unionised collective bargaining agreement – but confirm the tokenisation aspect of the agreement.

Token Provides Up-Front Capital

By securitising the contract, the player will be able to gain an up-front lump sump payment from investors in the token by promising in return to payout a share of his future income. It is reported that Dinwiddie would pay investors their principal investment back along with interest on the investment.

The likely appeal of such an arrangement for Dinwiddie, who has taken a business course at Harvard, is that he would have a sum of money to invest immediately rather than have to wait for the life of the contract to take its three year course.

With the majority of central banks appearing to be locked into the Zero Interest Rate Policy (ZIRP) or Negative Interest Rate Policy (NIRP) routes, now may be a fortuitous time for Dinwiddie to access the bulk of his earnings if he has a particular investment plan in mind.

Although there has been no confirmation of where the player would invest any proceeds of the token sale, perhaps his latest succinct post on social media, where he describes himself as “Just a Tech guy with a Jumper”, can provide a clue.