Brooklyn Nets player, Spencer Dinwiddle, is set to get an upfront lump sum from the $34.6 million contract he signed with the NBA Team. This is a new move in the NBA. The player is said to be starting his own company in order to change his new contract into an investment plan. In other words, the player is using the contract to secure himself for the long term by giving up a bit of security in terms of his financial future for a small and immediate payment. He has set aside 3 million to ensure that he has a safety net.
Spencer Dinwiddie is introducing the NBA to Tokenization. This is common in the digital currency sphere. It refers to transferring your physical assets into digital assets allowing them to be treated as stocks by being distributed and shared. Dinwiddie further mentioned that this move will enable fans and investors to make money from him. His plan, however, still needs approval from the league as well as the player’s union. Spencer Dinwiddie was quoted as saying there is no better way for the fans to be invested in the NBA than having a ‘level of skin in the game’.
Spencer Dinwiddie Explains Tokenization
As we had previously explained, in terms of Spencer Dinwiddie’s contract, tokenization will be done through Dinwiddie receiving an upfront payment from investors. Investors can then receive their investment after three years, which is the number of years his contract was increased by. According to Dinwiddie, if he is playing as well as he assumes he’ll be playing in three years, he is likely to get a better contract with a larger sum that investors can indulge in.
He said; “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% range in a return, like a growth stock, and that’ll be something most guys won’t beat.”
Is Tokenization Possibly Permanent in the NBA?
Seeing as this is a new concept in the NBA, and considering that it hasn’t been approved, there will be certain limitations to it. Spencer Dinwiddie is among the smartest players in the Brooklyn Nets with an entrepreneurial flair. His expectations are that the deal will enhance interaction with the NBA and the fans.
Check Out Other Sports News Below:
- The ATP Has Banned Nick Kyrgios Following Investigations
- Rugby World Cup Fixture: Canada vs Italy
- Antonio Brown Attacks the NFL on Twitter
- Montreal Canadiens Win against Panthers
- Kaillie Humphries Ready to leave Canada Bobsleigh