“I think the prolonged conversation obviously worked …

More on Spencer Dinwiddie Contract

Part of the league’s opposition, Dinwiddie thought, was based off fear because of how new and innovative the idea was. “Legacy systems generally do fear that type of thing,” Dinwiddie said. “And so they kind of drew a hard line and kept talking about termination.”
After months of discussions with the NBA, on Jan. 13 Dinwiddie will launch the digital investment vehicle using his $34.4 million Nets contract, The Athletic has learned. Dinwiddie has made changes to his product and has no longer tied the platform to his NBA contract, according to sources. “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.
The NBA is continuing to review final proposals and documents that Dinwiddie’s group has sent, according to sources. 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 cannot be approved.
Spencer Dinwiddie: 2 things. Yes I’m doing it. No I’m not getting myself suspended and jeopardizing the team. Regardless of what they want you to believe basketball is my second priority in life behind my family (Elijah specifically) Guess that makes 3 things ??
“I really just find the play-option stuff so funny,” Dinwiddie said. “If we’re going to break it down by technicality, wouldn’t every player in a player-option year be incentivized to screw their team and shoot a million times and try to average 40 points and all that stuff, right? But I’m saying if we’re going to talk about gambling, then it’s gambling by nature. The same way a team option would incentivize a team to short the player, right? Like ‘Oh, if I don’t play him as many minutes, maybe I can sign him to a long-term deal, lock him up and then he can’t potentially make as much money.’ “If you want to play that card, then that’s on you guys, because you guys made the CBA the way you guys made it. I’m merely just saying since the CBA is the way it is, can I do this with my money? That’s literally all I said.”
The NBA hired outside legal counsel to take part in its ongoing discussions with Brooklyn Nets guard Spencer Dinwiddie regarding his investment vehicle using his $34.4 million contract, and the Debevoise & Plimpton law firm and the league have informed Dinwiddie that his digital token cannot be approved at this time, The Athletic has learned.
Dinwiddie still plans to move forward and launch his digital investment platform, according to sources, with the Nets swingman said to believe that the NBA’s lack of approval is baseless. “At the request of Spencer Dinwiddie and his advisors, we have reviewed a number of variations of their digital token idea,” Dan Rube, the NBA’s Executive Vice President and Deputy General Counsel, told The Athletic. “All of the ideas presented would violate collectively bargained league rules, including rules prohibiting transferring a player’s right to receive NBA salary, gambling on NBA-related matters, and creating financial incentives to miss games.”
The league’s stance on this right now is that it wants to work with Dinwiddie and find common ground, as the league does with every player-related issue or idea. Should Dinwiddie go through with his plan without NBA approval, he could be subject to penalties such as termination of contract, suspensions without pay and fines.
Spencer Dinwiddie’s meeting with lawyers from the NBA and Players Association over what he has named his Professional Athlete Investment Token (PAInT) went well enough for him to feel confident in moving forward with the project soon. “They had four or five comments previously, we got them down to one,” Dinwiddie said. “I think we’re going to get it done. It’s just pending a little more feedback. “Obviously there might be one more iteration, just of making sure they’re perfectly fine with it. Our goal was to partner and not to go to war. The good thing is obviously they see that we’re not breaking any rules, so it’s all about just kind of appeasing them as much as possible.”
Dinwiddie plans to offer what he has named his Professional Athlete Investment Token (PAInT) as soon as this week. The offering has a minimum investment of $150,000, and it would be available only to accredited investors on a new platform that he hopes will eventually host dozens of athletes who follow his lead. The NBA has taken issue with Dinwiddie's efforts, and the two sides have been debating whether issuing a PAInT would violate the league's collective bargaining agreement (CBA). Dinwiddie is hopeful that the measures he has taken over the past few weeks will persuade the league of its permissibility under the CBA.
Though the information isn't public, Dinwiddie says the token likely will pay an annual interest rate in the range of 2.5%. That would mean that on that initial $150,000 investment, you would earn $3,750 over the next year -- paid either quarterly or biannually -- and $3,750 in 2020-21. Year 3 is when the token effectively matures and things get interesting for both Dinwiddie and you. Dinwiddie is performing his own personal "revenue sharing" of his individual post-tax 2021-22 basketball related income. Dinwiddie said this will be done at a 60-40 split and that 40% will be paid out to investors.
What is Spencer Dinwiddie's plan? A few different things. In the big picture, Dinwiddie's token would be a proof of concept for a larger objective: He wants to create a new asset class -- athletes -- that would allow fans and anyone else to invest in players the way you would the stock market, a treasury bond, a real estate fund or cryptocurrency. Those assets could then be traded on a platform that he is in the process of creating. Most immediately, though, he wants to offer a debt issuance to accredited investors that would be backed by his earnings in the 2021-22 season. This product, which would be issued as a token (PAInT), would have many of the characteristics of a typical bond, but it's quite different.
If Dinwiddie moves ahead with the opening of his investment vehicle, what recourse does the NBA and/or the Nets have? Could they suspend him? Could the Nets nullify his contract? Sources say the NBA hasn't reached the point where they're contemplating disciplinary actions against Dinwiddie, and the two sides are continuing to discuss the matter. But if the league felt like Dinwiddie was truly in violation of the CBA, disciplinary action could be conceivable.
What's in it for Dinwiddie? Dinwiddie raises millions in cash at the front end of his contract that he can now put to work in various investments. "The $13.5 million would be in relatively traditional vehicles," Dinwiddie said. "You want to be strong with your money -- we've all heard the horror stories. These investments are designed to be something that athletes can benefit from. We're going to set aside [an amount] for venture capital, but it's not like I've found a new element or anything like that."
Marc Stein: Nets guard @Spencer Dinwiddie confirms to @NYTSports that he has another meeting scheduled with the NBA on Monday -- on the eve of the regular season -- as he continues to seek league cooperation to "tokenize" his contract. The NBA, to date, has said Dinwiddie's plan violates the CBA
Spencer Dinwiddie: We were ready to open on the 14th but in the spirit of partnership, we are pushing it back a week to try and allow the @NBA sufficient time to respond. Having been on the ground in China, we are sensitive to what the @NBA has been dealing with. (1/8) This is why we are giving them additional time as our goal is to partner. 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)
Spencer Dinwiddie: 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) This is a third party business transactions between the fans and I beyond the jurisdictions of those entities. Much like the way no one can tell me which home or car I can buy, I am free to use my money the way I see fit. (4/8)
Spencer Dinwiddie: To continue to suggest anything else is deliberately misleading the public. 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) will be able to make an informed decision. As we have witnessed, any great business that is built upon its consumers knows how to listen to the demands of that base and adjust as necessary. (6/8)
Spencer Dinwiddie: Although we are individual assets in this instance we are a part of a collective family in the sports/entertainment world as a whole and those same fans should be involved and empowered to determine what their appetite entails. (7/8) Lastly, as we speak about freedoms domestically and urge athletes to offer comments on situations they maybe werent prepared for, it would be a shame if we try to abuse our power to limit similar liberties that can be beneficial to all parties involved due to misunderstanding.
Nets guard Spencer Dinwiddie’s plan to convert his $34.4 million contract into a digital investment vehicle has caused a stir, and a lot of curiosity about how exactly it would work. As we reported on Monday, the NBA and Dinwiddie scheduled a meeting together after the league objected to his plan and raised concerns. According to sources, Dinwiddie and NBA officials met on Thursday and both sides had back-and-forth discussions regarding legal issues about the plan. Dinwiddie still plans to move forward with his plans, sources say, as the NBA reconvenes over potential next steps.
But Dinwiddie said that was never his plan in the first place. “I wasn’t doing it anyway,” Dinwiddie said. “You’ve got to think about it: If I spent just short of a year building it, you really think I didn’t read the CBA? You really think I didn’t have lawyers read the CBA? That would be outrageously stupid. If it’s a whole business and lawyers went through it, they probably saw that provision, right? Which means that we wouldn’t construct it in a way that would violate the CBA because who wants to lose their job? That would be pretty dumb on my part.
“So we constructed it in a way that doesn’t violate the CBA. They said they were going to make their statement, and I honestly just said, ‘That’s not what I’m doing.’ It’s very simple. Once the Nets pay me, that’s the end of it. If I wanted to shoot the money into deep space, technically, I could.” Dinwiddie plans to have further conversations with the NBA, though presumably not Elon Musk for the space plans.
Malika Andrews: Spencer Dinwiddie addressed the back-and-forth with the NBA over whether or not he can tokenize his contract. The NBA issued a statement saying Dinwiddie would violate league rules by doing that. Dinwiddie said today that his lawyers made sure he was not violating the CBA.
Spencer Dinwiddie: The news tonight is disappointing because all it does is inspire #FUD in the birth of a previously unrealized asset class under the assumption that I’m breaking a rule that I’ve been clear I’m not breaking in multiple conversations.
Spencer Dinwiddie: I look forward to an understanding because as I stated in the previous articles it was made with the @NBA in mind. Hopefully being able to bring added fan engagement to the different players/teams and liquidity for team owners.
The N.B.A. on Friday notified the Nets’ Spencer Dinwiddie that he cannot use his contract as a digital investment vehicle, according to a league official. Dinwiddie had announced earlier this week to The Athletic that he planned to go public with an “$SD8” token offered by his company DREAM Fan Shares that would enable investors to essentially buy into Dinwiddie’s three-year, $34.4 million N.B.A. contract.
The N.B.A. issued the following statement to The New York Times on Friday: “According to recent reports, Spencer Dinwiddie intends to sell investors a ‘tokenized security’ that will be backed by his player contract. The described arrangement is prohibited by the C.B.A., which provides that ‘no player shall assign or otherwise transfer to any third party his right to receive compensation from the team under his uniform player contract.’
For Dinwiddie and his investors, the prime appreciation is designed to come during his player option season in 2021. Dinwiddie has a player option worth $12.3 million for the 2021-22 season. By opting out and earning more, it will, of course, create a major return for him — but also investors. “What better way to be invested in a player as a fan than to have some level of skin in the game,” Dinwiddie told The Athletic. “With the way mine works, if I play well in that player option year and we split the profits up the first year of my new deal, it greatly appreciates the return on this investment vehicle. It allows you to get up in that 15-percent range in a return, like a growth stock, and that’ll be something most guys won’t beat.
“And you’re going to be invested in watching your favorite player. It’s something with a floor, guaranteeing you a floor, and obviously the cap on the return would beat most stocks in the economic climate that we’re going into. To make it as simplistic as possible, the real growth is for the third year, just like my contract is. You have the guaranteed premiums. You have the big-time fluctuation in the third year, with a floor. Everyone can appreciate it and make money. “Establishing an asset class that is not correlated to the legacy markets and stocks that are going to get hammered when everything comes to fruition, it can help people save money and create a real fantasy sport. It enhances the real fan engagement. It enhances the NBA.”
How do you believe this is going to change the game and how can people get involved? I’m doing it through my company, Fan Shares, and people will be able to go on the website and buy a token. It will pay out in cash. I’m not creating my own currency; that was floated out there. I’m not creating my own Bitcoin. These transactions will flow through the dollar. The money that we’re operating under is guaranteed from my contract.
Dinwiddie will in essence sell bonds in himself to raise funds. The Players Association had no comment on Dinwiddie’s plans, and there have been questions about whether it could face long, drawn-out scrutiny from the league, although Dinwiddie wasn’t expecting it. “What are they going to do, try and stop me? I mean, they could try,” Dinwiddie said. “Then they’d have to have legal standing to do so. Do you really want to do that? Because wouldn’t that be bad PR for them to do that? I would think. Then I’d start to look like [Colin] Kaepernick. “Nothing I’m doing is illegal. I know there’s a lot of misinformation out there, like I’m trying to create a currency or something. I’m not trying to reinvent the wheel and create a new bitcoin; this is different. … I will say this, though: It solves some of the league’s fan engagement issue. It does do that.”
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.
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.
The National Basketball Players Association was informed of Dinwiddie’s decision this week, sources said. While unique for the NBA, it is not the first time a pro athlete has attempted to turn his future earnings into an investment vehicle. Former NFL running back Arian Foster, then with the Houston Texans, started the process of listing himself as a private stock under a company called Fantex Inc. in 2013.
Storyline: Spencer Dinwiddie Contract
More HoopsHype Rumors
April 9, 2020 | 9:12 pm EDT Update
Will the NBA’s indefinite suspension limit what the Warriors do with the checkbook in the offseason? “We’re looking at all of those questions and the possible answers. But I don’t really have a good sense yet because I really have no idea how this is gonna shake out,” Lacob told Tim Kawakami of The Athletic on Thursday morning. “We don’t know what the salary cap is gonna be, we don’t know what the luxury tax is gonna be. We don’t really know what we can plan on at this point. We just have to look at a lot of different scenarios. That’s what we’re doing right now. It could make a huge difference, it might make no difference.”
Storyline: Season Suspension
As Illinois goes through this together, the United Center, home of the Chicago Bulls and Chicago Blackhawks, is proud to be playing a critical role with our city, state and federal response to the pandemic. As announced on March 25, our arena and outside campus will be transformed into a logistics hub where we will be assisting with food storage for hunger relief, first responder staging and the collection of critically needed medical supplies.

Moving forward, the Greater Chicago Food Depository, Chicago’s food bank, will be utilizing the United Center as a satellite storage facility in response to the increased need for food. By alleviating space in the food bank’s warehouse, the Food Depository can bring additional volunteers into their facility to build more family food boxes in an environment that adheres to social distancing protocols. These boxes will continue to be distributed to those in need by the Food Depository’s partner network throughout Chicago and Cook County.
Storyline: Coronavirus

April 9, 2020 | 7:56 pm EDT Update

Pau Gasol contemplating retirement

With the league’s current campaign suspended indefinitely due to the global outbreak of the coronavirus, Gasol, who will turn 40 years old in July, is contemplating retirement at this point of his career. “With this recovery process and the injury that I have been dealing with for more than a year, it’s undoubtedly inevitable to think about retirement,” Gasol said in an interview with the Spanish newspaper El País, via NBC Sports. “Also, taking into account that I will be 40 years old in a few months. So, [retirement] is definitely on my mind.”
This rumor is part of a storyline: 14 more rumors
“It’s something that will come one time, sooner or later,” Gasol said of retirement. “We hope that time hasn’t come yet. But I also take the opportunity to focus on the Gasol Foundation and other off-court projects. And also think of what my next professional stage may be, my next challenges. All this while I’m still recovering, trying to give myself a chance to keep playing. Now, the priority is to overcome this pandemic among all. Everything else is completely secondary.”
In 2011, Jacob Hamilton was a 26-year-old cinematographer looking to expand his portfolio by directing a documentary. He came across a two-minute interview online titled, “The Man Who Invented the Jump Shot.” Four years later, Hamilton was screening his short film in Kevin Durant’s backyard, shocked to see one of the NBA’s best-ever jump shooters geek out over footage he’d gathered of Kenny Sailors from the 1940s. The film was still only halfway to the finish line. “Jump Shot” premiered at South by Southwest in 2019, but still hasn’t been released to the public. That will change next week, when the feature-length documentary will be available online April 16-18. Pre-order is underway at jumpshotmovie.com.
“Jump Shot” got two of its most important assists from NBA superstars Steph Curry and Durant. Hamilton had simply hoped for an interview when, through a connection between an executive producer and a chaplain for USA Basketball, the former Golden State Warriors teammates were introduced to Sailors’ legacy. The crew flew to Oakland and were invited to Durant’s home. Partway through the screening, KD asked for the film to be paused. Hamilton feared the worst, a bored millennial. In reality, the former Longhorns star was mesmerized. “These are moves that I’m doing today,” Hamilton recalls Durant telling them. “I was literally working on this in practice this week, and Kenny was doing this 60-70 years ago? This is unbelievable.”
Curry took his adoration a step further when he told Hamilton he was not only up for an interview, but wanted to get more involved. That’s how basketball’s greatest jump shooter became an executive producer. Both players are interviewed in the film, along with a lineup of basketball legends — from Dirk Nowitzki to Bob Knight, Nancy Lieberman and Clark Kellogg. Their astonishment at Sailors’ pioneering shot, particularly a photograph that appeared in Life magazine in 1946, will resonate with basketball fans.
April 9, 2020 | 6:35 pm EDT Update
When this all ends, whenever that is, what’s the one thing you’re most looking forward to doing on that first day? Dion Waiters: Just trying to hoop. Just vibe out and hoop. I’ve had damn near the whole season off. I’m trying to get back and hoop. I got something to prove at the end of the day. During this quarantine I’ve been dieting, getting my weight down, getting in shape. For me, it’s just playing basketball.
“I am in such debt to the people who worked so incredibly hard on the technical side to make what I believe is still magic — there might be some elves involved, it is Disney after all,” ‘The Jump” host Rachel Nichols told Insider. “I can’t believe that they were able to figure out a way to produce an entire television show with everybody at home, not a single person in our television facility.”
April 9, 2020 | 6:29 pm EDT Update
If nothing else at a time when the Clippers have more questions than answers amid the NBA’s hiatus because of COVID-19, the team is confident in at least one thing to be true. Should the season resume, the same roster that had been dogged by injuries since last summer is on track to be the healthiest it has been. “The Kawhi [Leonard] we’ll see will be in phenomenal shape,” coach Doc Rivers said, adding that Paul George “is another guy that’s goig to be in phenomenal shape. Reggie [Jackson], who was injured when we got him, will now be healthy.”
Since there is a pause on all roster transactions across the league, the 10-day contract Noah signed remains in effect one month later. That has left the former defensive player of the year able to work into shape under the supervision of the team’s medical and performance staffs. “It’s been great for him,” Rivers said. “There are certain individuals who this rest period, or whatever this is called, has been a benefit, and Jo is one of them for sure because he’s got a chance now to get healthy, and to get in shape and that will be a factor for him. He will be a guy that will be able to help us.”
A whopping 72% of Americans polled said they would not attend if sporting events resumed without a vaccine for the coronavirus. The poll, which had a fairly small sample size of 762 respondents, was released Thursday by Seton Hall University’s Stillman School of Business. When polling respondents who identified as sports fans, 61% said they would not go to a game without a vaccine. The margin of error is plus-or-minus 3.6%.
Storyline: Coronavirus
NBA star DeMarcus Cousins first hired Noordin Said to be his personal security guard in 2015 during All-Star weekend in New York. From there, the two hit it off, and Said worked the 2016 Olympics in Rio de Janeiro and the 2017 All-Star weekend in New Orleans at Cousins’ side. Golden State Warriors star Draymond Green hired Said to be his personal security guard during the 2018 playoffs, and Said worked this season with Los Angeles Lakers guard Rajon Rondo at most home games.
Storyline: Coronavirus
April 9, 2020 | 5:21 pm EDT Update
As the coronavirus pandemic continues across the world, NBA owners are hoping for the best but preparing for the worst. The league plans to keep all options to resume the season available for the time being, sources told ESPN, but the financial realities of the situation demand near immediate action. That has become clear in talks between the NBA, the National Basketball Players Association and player agents, sources told ESPN, as the league tries to get its finances in order in the event the rest of the season must be canceled.
Storyline: Salary Reductions
The league’s CBA includes a force majeure clause, enabling owners to cancel games and recover salary in the event of a pandemic. This clause also gives the league a 60-day window within which it can rip up the CBA entirely — effectively beginning a work stoppage. No one wants to do that. But it underscores the gravity of the situation. Still, in recent years the two sides have worked as well together as ever, and the CBA isn’t set to expire until 2024.
The agreement between owners and players in the last CBA calls for roughly splitting revenue 50/50 and also splitting the coming losses. So, the owners want to hold back a percentage of players’ checks going forward — both giving them extra money they can use now, if needed, and also to help balance the books in the event some, or all, of the remainder of the season is canceled. From an economic standpoint, both sides would prefer to limit the pain of the shutdown to only this season and not start next season with IOUs on the ledger. Setting the money aside now would help do that.
Karnisovas will have full decision making over basketball operations, including the futures of Forman, head coach Jim Boylen, and the entire coaching staff. He was even asked about Paxson, and had the option of having the organization move on from the long-time Bulls executive if that’s what he desired. However, a source indicated that Karnisovas had no issues with the Reinsdorfs keeping Paxson around.
There were multiple reports that the search angered a handful of African American executives around the league, who felt like people of color weren’t involved in the searching process by the Bulls. A source close to the situation, however, indicated that not only did Michael Reinsdorf reach out to multiple minority candidates to try and get interviews – but was denied permission to do so by their current organizations, and in some cases simply turned down.
April 9, 2020 | 5:10 pm EDT Update
One of the most indelible images from the night the NBA shut down was a young girl crying at a Sacramento Kings game. Her tear-stained face and broken heart reflected how many people felt about the temporary end of life as we knew it and the indefinite stoppage of sports. That girl’s name is Sophie, and Kings player Harry Giles wanted to make her feel better. So he recently sent her and her brother a sweet video message. He apologized for the way their last game ended, and to make up for it, he invited them to a Kings game when sports are back underway. Not surprisingly, Sophie was extremely excited.

Shelby Delaney of the Summit Medical Center in Oakland was one of the first nurses to volunteer to help coronavirus patients at the hospital. Curry made sure the 27-year-old knew how important that was. “I can’t thank God enough for what you’re doing and just the sacrifice, the selflessness and the way everybody’s coming together,” Curry told her on the call. “Thank you so much for just what you do, your heart and the inspiration you provide for everybody.”
April 9, 2020 | 5:02 pm EDT Update
“I have an organization who basically gave me the keys,” Beal said. “‘We’re going to build around you. We’re going to get guys around like’ – if I go anywhere else, granted, it may be a good team, but I would be a piece. Who knows if my role would be the same? My role here is, I love what it is. I love [Scott] Brooks. I love what we have. I love our young guys. I think the fact that we actually have guys that are committed to getting better.”
Lowe opened the podcast by giving Beal the opportunity to address the omission: “I was angry, but I wouldn’t say I played angry because of that,” Beal said. “At the end of the day, I wanted to make the playoffs. The All-Star game was what it was. I’m not mad at you for your votes. For me, I will never take that moment away from the other 24 guys. Because that was me two years ago and a year ago. I can’t sit here and take that moment away from Jayson Tatum and Donovan Mitchell and guys who got their first one.
April 9, 2020 | 4:50 pm EDT Update
Eric Gordon said he would not object to having a season restarted in a sequestered location, one of the ideas the NBA is considering. But he also indicated it is too soon to know if even that will be possible. “That sounds like almost our only option,” Gordon said. “That’s the only thing that can make sense. Just coop us up in a hotel for months and see if we can have that chance to have the season. It’s still a dicey situation, so we’re just hoping this virus calms down and goes away quickly. As of right now, it doesn’t seem like it is.”
Storyline: Season Suspension
Eric Gordon works out at home without knowing when to ramp up for a return that is in question. But he is unwilling to allow himself to fret over what a season lost to the coronavirus crisis would mean for him and the veteran, win-now Rockets considering the far greater concerns. “It’s hard to explain how I feel because of the situation we’re all dealing with,” Gordon said. “That’s the real concern. Just try to stay away from everybody, keep healthy.”