Storyline: Spencer Dinwiddie Contract

58 rumors in this storyline

By selling off stakes in the contract, Dinwiddie could get access to liquidity now that otherwise wouldn’t have been available for years—liquidity that could then go toward other investments. And investors in the token would receive annual dividends, with the guaranteed nature of NBA contracts making it a relatively low-risk proposition. For Dinwiddie, who was integral in crafting the offering, it would also have the added elegance of streamlining a marketplace he sees as rife with inefficiency. “People always act as if the NBA is where all the value is really retained, and the current dynamic, they try to make it seem that way,” he said. “But really, they’re brokers within the system. The consumer is purchasing access to the asset, and the asset is the athlete. So the more you can bring the consumer and the asset closer together, the more you bring value to the system.”

More Rumors in this Storyline

Cred, a cryptocurrency-based lending and borrowing service, is teaming up with professional NBA basketball player and businessman Spencer Dinwiddie. A special web page and service was launched on March 20, 2020 for Dinwiddie’s fans who may use the Cred platform. Cred allows users to earn interest on stablecoins (digital assets usually pegged to national fiat currencies) and other cryptocurrencies. The company has been offering a highly competitive 10% annual interest rate. Users may also use Cred’s lending services by collateralizing their digital asset holdings.

Cred, a cryptocurrency-based lending and borrowing service, is teaming up with professional NBA basketball player and businessman Spencer Dinwiddie. A special web page and service was launched on March 20, 2020 for Dinwiddie’s fans who may use the Cred platform. Cred allows users to earn interest on stablecoins (digital assets usually pegged to national fiat currencies) and other cryptocurrencies. The company has been offering a highly competitive 10% annual interest rate. Users may also use Cred’s lending services by collateralizing their digital asset holdings.

On Tuesday, New York Nets point guard Spencer Dinwiddie confirmed his platform Dream Fan Shares (DFS) will partner with a new broker-dealer to help launch a token offering backed by his NBA contract. DFS will partner with Tritaurian Capital, a FINRA registered broker-dealer and investment bank which specializes in blockchain and digital securities. “Tritaurian is a registered broker-dealer that has worked closely with regulators over the past several years to understand their perspective on blockchain and cryptocurrency,” read an email sent to prospective investors.

Crypto industry insiders are hopeful Dinwiddie and DFS can become the first successful pioneers of this kind of venture. “I am cheering for Spencer and think that he is one of the most forward-thinking professional athletes out there,” Anthony Pompliano, co-founder and partner at Morgan Creek Digital, told Decrypt. “The mechanism that he is proposing here is not only incredibly smart, but it will likely become the norm at some point in the future.”

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.

“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.”

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.”

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.”

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.

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.”

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.
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July 13, 2020 | 11:39 am EDT Update
Rivers: If he was in an era 10 years ago, Boban would be a big-time player. He’s just in an era where he’s 10 years too late. And he’s still in the league doing his thing, but make no mistake about it, if he was in 2003, 2006, Boban would be a force to be reckoned with. Van Gundy: I’ve always wondered if I, you know, should’ve played him more. You get so concerned with the defensive end of the floor, but with what he can do offensively, I’m not sure we wouldn’t have been better off playing him more and dealing with whatever defensive problems came up.
Van Gundy: The guy gets no privacy, yet the way he responds to people is so good and with such generosity and such kindness to people. You would think at some point you would get really, really tired of it, and he may, but he certainly never shows that and I never even heard him convey that. It’s genuine. He’s not out there faking it, and then walking around saying, “I’m really tired of this s— with everybody bugging me.” I think he genuinely enjoys being around people.
Kaminsky: The first time I ever played against Boban, we were playing in San Antonio. Tyler Hansbrough was on my team at the time. … And Boban checks into the game, and he’s standing next to him at the free-throw line, and I’m trying to talk to him, but Tyler’s standing there staring up at him, like, This is the biggest guy I’ve ever seen in my life. Literally, there’s a video, I’m standing on that side of the lane trying to get his attention, he’s just standing there, like, [Kaminsky pauses, leans back, looks upwards, mouth agape, miming what Hansbrough looked like].
The league’s first crack at sponsored entertainment for the players fell flat. On Saturday night, the NBA brought in three disc jockeys to spin records at poolside parties at each of the three Disney hotels housing players. Almost no one showed. “The first time I heard about the DJ thing was (Sunday),” Davis said. “Dwight (Howard) told me he was the only one there. I think, quite frankly, a lot of guys didn’t know about it. I know the NBA is trying to make this as comfortable as possible and as relaxing as possible for us, and just make everyone feel as home as possible.”
Storyline: Orlando Bubble
Another African American senior league executive, speaking anonymously, asked why Eversley didn’t get interviewed for the top job. “With all due respect, I am delighted that Marc Eversley is the GM of the Bulls,” the league executive said. “But why wasn’t Marc Eversley interviewed to be the president of basketball operations? Why was there no one of color interviewed for that position? You mean to tell me that there was nobody in the mind of the leadership of the Bulls qualified to take on that job as president? Or was it just that they don’t know anybody? “So the question I’m asking is what took them so long. Somebody needs to ask the question. That question needs to be asked more and more league-wide.”
As in any industry, connectivity is imperative, and often times cultural perspective can get ignored. But that perspective is pivotal in every aspect of NBA business, from scouting to coaching to negotiations. “It’s a relationship business,” the Western Conference exec said. “You’ve got to have relationships with the players and coaches. For all of us to be connected in some form or fashion it only bodes well. There should be no separation. Everyone should be working together to push the franchise forward and win.”
Pocius went on to play for Real Madrid and Galatasaray — a team in Istanbul — with two more stints with Zalgiris Kaunas sandwiched in between. Seven years into his playing carer, Pocius initially had no intention of stopping. However, his body had a different idea. “Since I played at Duke, I had had seven surgeries,” Pocius said. “It took a toll on my body and I was in this cycle of getting injured, having surgery, trying rehab, all to come back and then have it happen all over again … I was reaching a point where I wasn’t enjoying basketball as much as I used to. I was a gym rat and I loved the gym, and it wasn’t fun being there anymore.”
Connelly looked at Pocius and said, “Well, if you just want to retire and come join us, we’ll make that happen.” Pocius thought it was a joke. And at that time, retiring seemed far-fetched. But after he made the decision to stop playing Pocius reached out to Connelly to see if the offer was still on the table. “I flew out to Las Vegas for Summer League and I met with Tim and all the other guys and one thing led to another,” Pocius said. “I’m truly happy that I decided to retire when I did.”
July 13, 2020 | 9:17 am EDT Update
Alex Poythress joined Zenit Saint-Petersburg on a one-year deal, the Russian club announced on Monday. Eurohoops previously reported on the deal between the two parties. “I am very pleased to join Zenit, an organization that plans to make a breakthrough in EuroLeague this season,” he noted upon signing per the official site of his new team, “I heard a lot of amazing things about Saint-Petersburg and can’t wait to join the team.”
Storyline: Alex Poythress Free Agency
Three weeks ahead of the NBA’s planned resumption of the 2019-20 season at Walt Disney World Resort, the league’s Global Innovation Group is considering several scenarios for next season, including one that would begin in March and run through October 2021. An internal planning document obtained by Morning Consult outlines four scheduling scenarios the league is considering for next season, including one in which it would push the start of next season back to March if there is a path to a coronavirus vaccine or therapeutic treatment that increases the likelihood that its teams could host fans in their home arenas over the course of an 82-game schedule.
The document spells out a wide variety of “levers” the league could pull in developing its plans for next season depending on the state of the pandemic. These include holding a play-in tournament for the playoffs, playing with the timing of a potential All-Star Game, rolling schedule releases, increasing game density, building in buffers for canceled or rescheduled games and potentially using alternate sites like neutral markets or practice and G League facilities. One plan, which is contingent on an improving COVID-19 situation, would essentially involve the league putting on a traditional 82-game regular season, just bumped back from its usual October start date. It would feature a traditional schedule release and standard matchups (16 games against divisional opponents, 36 nondivisional intraconference games and 30 interconference games).
“Ron Adams is our resident – is oenophile correct?”Kerr asked on this week’s “Hoops, Adjacent” podcast. “In fact, when I interviewed Ron to come aboard with the Warriors in 2014, my assistant Nick U’Ren and I took Ron out to dinner to interview him. We ordered a bottle of wine. It was an Italian restaurant. They didn’t have any California Pinots, which is what we were looking for. And the waiter said, ‘You know, if you want, I’ll bring you kind of the Italian version of a Pinot.’ We said great. “So he brings back the wine, he opens it up, he gives Ron the taste – you know, how you swish it around (in your mouth)? Well, Ron became the first person I’ve ever been to dinner with who sent the wine back. On a job interview!”
The Detroit opportunity comes with a pretty dismal short-term outlook, but it also could be more promising in the longer term. Sources tell me owner Tom Gores has been willing to spend money on the things fans don’t see (staff, scouting, training resources) that make life a lot easier for a rebuilding team. Additionally, the team is at a pretty clear transition point for Weaver to put his stamp on the team. The post-Blake Griffin-trade delusions of grandeur have been replaced by the grim acknowledgment that this team needs to rebuild and it could take a while.
July 13, 2020 | 9:15 am EDT Update
Alex Poythress joined Zenit Saint-Petersburg on a one-year deal, the Russian club announced on Monday. Eurohoops previously reported on the deal between the two parties. “I am very pleased to join Zenit, an organization that plans to make a breakthrough in EuroLeague this season,” he noted upon signing per the official site of his new team, “I heard a lot of amazing things about Saint-Petersburg and can’t wait to join the team.”
Storyline: Alex Poythress Free Agency
Three weeks ahead of the NBA’s planned resumption of the 2019-20 season at Walt Disney World Resort, the league’s Global Innovation Group is considering several scenarios for next season, including one that would begin in March and run through October 2021. An internal planning document obtained by Morning Consult outlines four scheduling scenarios the league is considering for next season, including one in which it would push the start of next season back to March if there is a path to a coronavirus vaccine or therapeutic treatment that increases the likelihood that its teams could host fans in their home arenas over the course of an 82-game schedule.
The document spells out a wide variety of “levers” the league could pull in developing its plans for next season depending on the state of the pandemic. These include holding a play-in tournament for the playoffs, playing with the timing of a potential All-Star Game, rolling schedule releases, increasing game density, building in buffers for canceled or rescheduled games and potentially using alternate sites like neutral markets or practice and G League facilities. One plan, which is contingent on an improving COVID-19 situation, would essentially involve the league putting on a traditional 82-game regular season, just bumped back from its usual October start date. It would feature a traditional schedule release and standard matchups (16 games against divisional opponents, 36 nondivisional intraconference games and 30 interconference games).
“Ron Adams is our resident – is oenophile correct?”Kerr asked on this week’s “Hoops, Adjacent” podcast. “In fact, when I interviewed Ron to come aboard with the Warriors in 2014, my assistant Nick U’Ren and I took Ron out to dinner to interview him. We ordered a bottle of wine. It was an Italian restaurant. They didn’t have any California Pinots, which is what we were looking for. And the waiter said, ‘You know, if you want, I’ll bring you kind of the Italian version of a Pinot.’ We said great. “So he brings back the wine, he opens it up, he gives Ron the taste – you know, how you swish it around (in your mouth)? Well, Ron became the first person I’ve ever been to dinner with who sent the wine back. On a job interview!”
The Detroit opportunity comes with a pretty dismal short-term outlook, but it also could be more promising in the longer term. Sources tell me owner Tom Gores has been willing to spend money on the things fans don’t see (staff, scouting, training resources) that make life a lot easier for a rebuilding team. Additionally, the team is at a pretty clear transition point for Weaver to put his stamp on the team. The post-Blake Griffin-trade delusions of grandeur have been replaced by the grim acknowledgment that this team needs to rebuild and it could take a while.
July 13, 2020 | 2:18 am EDT Update
Malone would not confirm if Bol, 20, will be available to play when seeding games begin Aug. 1 against the Miami Heat. But it’s clear the Nuggets remain extremely bullish about his future. “To see (Bol) out there playing and doing things a lot of people can’t do is really remarkable,” Malone said. “He is extremely talented and skilled. You cannot teach 7-foot-2, you cannot teach a 7-foot-9 wingspan, and the soft touch that he has. He’s getting stronger, he’s getting healthier, and right now it’s good to see him compete against some of the other players that we have down here.
Irving spoke with his sister Asia in an Instagram live chat to discuss the latest Kyrie 6 colorway that she designed. Irving is well-aware that critics and NBA fans have been making fun of him for his eye-brow raising antics. But for him, what matters most is what he’s been doing over the past decade for the basketball community and society. “It’s about on the court, look at my resume, look at the classics, look at my art,” he said. “I created it for going on 10-plus years now. Don’t play with me. Don’t play with what I do on a day in and day out basis to provide and go out there and create.”
“I didn’t know what to decide: Should I have a social justice message or should I have my last name there? I just think my last name is something that is very important to me,” he said. “Also social justice as well. But just holding my family name and representing the name on the back to go through this process and my name and people who’ve been with me through my entire career to help me get to this point. While still kind of bringing up things that we can do for social injustice.”