This NBA Star Might Have a Multi-Million Crypto Plan
Brooklyn Nets guard Spencer Dinwiddie might make a crypto-first, that could become another crypto experiment and change the NBA landscape.
This player is to begin his three-year contract extension with the Nets, worth USD 34.36 million. What he’ll do is start his own company in order to securitize that contract in the form of a digital token, the Athletic reported, citing "multiple sources." That’s just the first step in the process of securitization. By turning his contract into an investment tool, the player should get a lump sum upfront, and though the exact amount he wants to raise is unknown, it will be less than the total amount of the contract. It would enable him to make an investment right away.
The National Basketball Players Association was informed of Dinwiddie’s decision this week, according to the report.
However, details are scarce and it's not clear how this model would work exactly.
Meanwhile, the only reaction from the player, who describes himself as “Just a Tech guy with a Jumper,” is this possible hint at what exactly he is planning to invest in:
So what are the risks? “Dinwiddie has a player option worth USD 12.3 million in 2021, and if he opts out and earns more on his next contract, it is unclear how that would impact investors,” the article claims. It added that the underlying collateral to the player’s plans is his contract, and while NBA is there to stay, based on the history of pro athletes trying to convert their future earnings into investment vehicles, “the biggest threat would be if somehow the Nets could cancel that contract for detrimental conduct.”
According to the analysts from the NBA’s Collective Bargaining Agreement (CBA), “this could potentially shift the league landscape” by changing the way in which players make decisions and assess risks, and the way in which they see contracts, the article adds. However, it states that CBA can handle any attempt at circumvention of it and its rules. “The approach could create ripple effects should Dinwiddie’s model prove successful,” concludes the Athletic.
This is not all for our sport-n-crypto day, as the players of the major football club Watford FC, will be carrying the Bitcoin logo on their Premier League shirts this season, in front of hundreds of millions of passionate football fans.
The logo is part of a wider campaign to "improve awareness around Bitcoin and educate the public on the benefits of using cryptocurrencies," led by the sports betting brand Sportsbet.io.
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