Spencer Dinwiddie Is Converting His New Contract into a Digital Token

According to a report published in The Athletic, Brooklyn Nets guard Spencer Dinwiddie is planning to convert his new contract into a digital instrument, which would represent the first such contract in the NBA. By creating his own company in order to securitize his contract, he’ll be able to sell shares of his contract to investors, the goal being to receive a larger lump sum payment than what he’s entitled to through his new three-year, $33 million deal with the Nets.

Before the announcement made news, Dinwiddie cryptically tweeted out “$btc”—popular shorthand for Bitcoin. Now we know what that was all about.

Some critics were immediately skeptical. (Very little information about Dinwiddie’s contract and its terms are available at the moment). At face value, it’s a fascinating decision, especially since NBA contracts are guaranteed in full. A securitization like this allows Dinwiddie to get more of the cash—potentially all of it—upfront, so he’ll have more capital to invest or spend. Dinwiddie is one of the most prominent tech and business enthusiasts in the NBA. One could only imagine he has plans for that money since he’ll be forgoing at least some of the long-term cash in order to get money upfront. 

Dinwiddie recently bought a penthouse in Brooklyn, one billed as “the highest penthouse” in the borough. A lofty new penthouse, a blockchain-enabled contract and a lump sum of cash... It makes us wonder, is Spencer Dinwiddie a Batman villain?

We'll find out soon enough. The season starts October 4.

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