NBA player Spencer Dinwiddie's plan for fans to invest in him on hold
Sports fans wanting to buy shares in NBA player Spencer Dinwiddie will need to wait a little while longer until he hits the open market.
The league and the Brooklyn Nets guard are meeting this week to discuss plans for the player to allow himself to become an investment commodity.
In September, Dinwiddie announced that he would allow investment in himself and his future earnings via a "tokenized security" that "will be backed by Dinwiddie's three-year guaranteed employment contract with the Brooklyn Nets." In late September, the NBA nixed the idea of Dinwiddie's investment idea which utilizes Professional Athlete Investment Tokens (PAInTs) as way to invest in a player and use his current and future contractual earnings as a means for income.
The New York Post is reporting on Monday that the league argues that "no player shall assign or otherwise transfer to any third party his right to receive a compensation from the team under his uniform player contract."
Brooklyn Nets guard Spencer Dinwiddie (8) dribbles the ball as Toronto Raptors guard Isaiah Taylor (17) defends during the fourth quarter of a preseason NBA basketball game Friday, Oct. 18, 2019, in New York. (AP Photo/Sarah Stier)
The guard said this past weekend that he will sit down with the league on Monday about the issue for what he termed as a "good faith” meeting."
"At the end of the day, it’s never something that I wanted to go to war with the NBA about," Dinwiddie told reporters this weekend. "I felt like it was something that, honestly, enhances the NBA experience. Because if fans are more locked in to their specific players, it’s only going to boost the league. At the end of the day, fan engagement is at a premium and this is something that enhances everything in our ecosystem."
Dinwiddie is coming off a solid season with the Nets where he averaged 16.8 points per game and 4.6 assists. His appearances came mainly off the bench as he made just four starts last year in 68 games.
The idea dreamed up by Dinwiddie and his partner, DREAM Fan Shares, "leverages guaranteed contracts and the potential for performance-based bonuses and other contingent bonuses to structure debt securities represented by PAInTs, giving accredited investors the opportunity to invest in securities tied to the financial success of athletes, artists and influencers."
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The minimum to get in the door is $150,000, with a minimum offering from Dinwiddie of 33 tokens guaranteed at $4.95 million. The maximum offering is $13.5 million or 90 tokens.