By Tonya M. Evans (Nov. 6, 2019)
In September 2019, Brooklyn Nets guard Spencer Dinwiddie announced his plan to convert his employment contract into a tradable financial asset. The Atlantic first broke the story on September 12, 2019.
Market’s Insider reported:
Dinwiddie will securitize his NBA contract as a digital token, sources told The Athletic. The extension would bring him more than $34 million over a three-year period, but sales of the digital token would allow him to raise a significant portion of that sum upfront.
Sports Illustrated legal analyst and UNH Franklin Pierce School of Law Professor Mike McCann, wrote an in-depth article about Dinwiddie’s move to tokenize his contract and transform it into an investment contract represented by cryptographically-secured security tokens.
McCann aptly notes the” details of Dinwiddie’s idea are intricate and rely on terminology unfamiliar to many, explaining further that, “[t]he larger picture centers on a much more relatable concept: athletes identifying new ways to maximize their earnings during relatively short and one-injury-away-from-abruptly-ending careers.”
I added my thoughts about Dinwiddie’s application of Web 3.0 technology to a familiar desire of professional athletes to create multiple revenue streams that outlast the short span of their earning potential in the pros:
We know what the NBA said. Hard pass. But what do you think? Are tokenized investment contracts for professional athletes a NO or a GO?