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Nets’ Spencer Dinwiddie turning his NBA contract into a digital investment vehicle

Spencer-Dinwiddie-Nets

Brooklyn Nets guard Spencer Dinwiddie is planning to turn his contract into a digital investment vehicle and receive an upfront lump payment, according to Shams Charania of The Athletic.

Dinwiddie signed a three-year, $34.4 million contract extension with the Nets in December of 2018.

Dinwiddie, according to multiple sources, is starting his own company to securitize his NBA contract in the form of a digital token as he begins a three-year, $34.36 million extension with the Nets. It’s unclear how much of the contract amount he wants to raise upfront, but it would likely be less than the total amount, according to sources.

In a securitization, the borrower gives up some future income in return for a smaller lump sum payment. But the borrower, in this case Dinwiddie, then has more money to immediately invest than he otherwise would.

A token is digital currency term. The bond exists in the digital currency world. Instead of buying the bond from a broker, it is through a token.

According to sources, this Dinwiddie bond would pay investors principal back and interest, which would be covered by what the Nets owe him.

Last season for the Nets, Spencer Dinwiddie averaged 16.8 points, 4.6 assists and 2.4 rebounds in 68 games while shooting 44.2 percent from the field, 33.5 percent from beyond the arc and 80.6 percent from the free-throw line.