Forward-thinking Nets point guard Spencer Dinwiddie, who has developed a plan to turn his three-year contract extension worth $34 million into a digital investment vehicle, was told by the NBA on Friday that it is not allowed because it violates the collective bargaining agreement. Dinwiddie disputed that notion following training camp practice on Saturday, described a statement by the league as “misleading” and said he hopes to resolve the situation and move forward with his plan.
In its statement for an article in The New York Times, the NBA said Dinwiddie plans to sell a “tokenized security” and added, “The described arrangement is prohibited by the CBA, which provides that ‘no player shall assign or otherwise transfer to any third party his right to receive compensation from the team under his uniform player contract.’”
Under Dinwiddie’s plan, investors would purchase digital tokens with a guaranteed rate of return rather than buying bonds from a broker. He hoped to raise a lump sum of $4.95 million to $13.5 million upfront. Dinwiddie said he and his lawyers previously discussed the matter with the NBA and the NBA Players Association.
“We constructed it in a way that doesn’t violate the CBA,” Dinwiddie said. “It’s very simple. Once the Nets pay me, that’s the end of it. If I wanted to shoot the money into deep space, technically, I could. It would be really dumb, it would be outrageously stupid. I wouldn’t advise anybody to do something like that.
“I love the league and I look forward to talking to them. At the end of the day, it was like, ‘I’m not doing what you’re saying I’m doing.’ So, publicly saying I can violate the CBA when I’m not . . . it’s kind of misleading.”
Dinwiddie said his idea of marketing himself to fans as an investment asset might help promote the NBA. Dinwiddie plans further discussions with the league, saying, “It could be as simple as a misunderstanding.”