Brooklyn Nets guard Spencer Dinwiddie has plans of starting a digital investment platform, but the NBA feels that his idea would violate certain parameters that have been collectively bargained on. Dinwiddie plans to move forward with his idea, but he could face penalties from the league, according to a report from Shams Charania of The Athletic.
The NBA hired outside legal counsel to take part in its ongoing discussions with Brooklyn Nets guard Spencer Dinwiddie regarding his investment vehicle using his $34.4 million contract, and the Debevoise & Plimpton law firm and the league have informed Dinwiddie that his digital token cannot be approved at this time, The Athletic has learned.
Dan Rube, who serves as the NBA's Executive Vice President and Deputy General Counsel, provided a statement with regards to Dinwiddie's plan:
“At the request of Spencer Dinwiddie and his advisors, we have reviewed a number of variations of their digital token idea,” Rube said, via The Athletic. “All of the ideas presented would violate collectively bargained league rules, including rules prohibiting transferring a player’s right to receive NBA salary and gambling on NBA-related matters.”
In September, Dinwiddie announced that he would allow investment in himself and his future earnings through a “tokenized security” that would be backed by his three-year contract with the Nets. The NBA argued against this idea, later stating 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.”
“At the end of the day, it’s never something that I wanted to go to war with the NBA about,” Dinwiddie said in October, via the New York Post. “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 has made 13 appearances with the Nets this season (two starts), racking up averages of 18.5 points on 41.7 percent shooting from the field (30.1 percent from beyond the arc), 4.8 assists and 2.4 rebounds in 26.9 minutes per outing.
The Nets will be back in action on Wednesday night, when they'll serve as hosts to the Charlotte Hornets. Tip-off inside the Barclays Center is set for 7:30 p.m. ET.
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