Author Topic: NBA may threaten Dinwiddie with suspension/termination if he does crypto plan  (Read 2874 times)

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Offline CelticsElite

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https://theathletic.com/1350781/?source=twittered


If he does go ahead, Charania reports, the league could impose strict sanctions on Dinwiddie, specifically citing the possibility of fines, suspension or even termination of his contract.

The Athletic reporter also disclosed the specifics of the NBA’s complaint, as determined by the outside counsel, Debevoise & Plimpton. The league has said, among other things, that the plan might violated NBA gambling prohibitions.

“At the request of Spencer Dinwiddie and his advisors, we have reviewed a number of variations of their digital token idea,” Dan Rube, the NBA’s Executive Vice President and Deputy General Counsel, told 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, gambling on NBA-related matters, and creating financial incentives to miss games.”


In basic terms, Dinwiddie’s proposal is to sell shares of his salary as digital tokens. This would functionally turn the contract into a lump-sum, upfront payment rather than a traditional salary. The tokens would be backed by Dinwiddie’s actual paychecks, which are guaranteed, though we don’t know specifics like how much each would cost or how many would be available.

For Dinwiddie, the upside is he would get more of his money right away, as long as people buy the tokens. Token buyers would have the potential to earn a significant return on investment ahead of the 2021-22 season, when Dinwiddie has a player option he can turn down and enter unrestricted free agency, where thriving players generally see their first massive pay raise.


Charania did not report directly on whether the league has threatened Dinwiddie with sanctions but noted, “Should Dinwiddie go through with his plan without NBA approval, he could be subject to penalties such as termination of contract, suspensions without pay and fines.”

Dinwiddie has consulted closely with the NBPA, the players union, on his plan.

Offline Somebody

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I can see why the NBA would be against this, these transactions can have a ton of implications that could get messy for the player and the league.
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Offline Csfan1984

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I'm actually for it. Sounds like a ton of fun for his fans. It's real life fantasy basketball, if your player does well you get a return on your investment. It's also kind of similar to buying an insurance policy. I say they bring in the players union and negotiate a one time trial of it with the idea that maybe it can be something they add in next bargaining agreement.

Offline CelticsElite

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Personally I think it's a very flimsy idea. Its backed by his paychecks which are not guaranteed at all even though it's being advertised as guaranteed. He could easily be terminated from the league for a variety of reasons. Also if he commits a white collar crime and gets arrested, the FBI can freeze and wipe his bank accounts and the paychecks are not being received they'd bounce . What happened to that "paychecks guaranteed"?  The token price would crash in such an instance and the fan who bought it would be screwed royally

In more likely scenarios, he could be injured significantly which would also crash the price of the token. But he gets the money from token sales no matter what and the fan who bought the share is now left holding an empty bag.


As an investment vehicle, its extraordinarily risky with not much upside and a lot of downside

It seems to me as a way for him to evade new york state taxes as well as other taxes by selling a crypto token.

Offline Fafnir

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He's trying to get a good rate on a loan backed by his contract with "blockchain!" and "crypto! attached. On the balance I think the league is in the right to try and draw the line here rather htan let him muddy it up.

I don't really care but I do think he's just getting sucked into a more modern version of the "income taxes aren't real" tax scammers in a way.

Offline Fafnir

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I'm actually for it. Sounds like a ton of fun for his fans. It's real life fantasy basketball, if your player does well you get a return on your investment. It's also kind of similar to buying an insurance policy. I say they bring in the players union and negotiate a one time trial of it with the idea that maybe it can be something they add in next bargaining agreement.
Except if you can trade the tokens, you can short them potentially. Aka you can bet against a player playing well. Which is one of the big problems.

He wants secured loan interest rates against his contract, which is not allowed.

Offline Walker Wiggle

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Why not just do the transaction in dollars? Why the cryptocurrency component?

Offline Fafnir

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Why not just do the transaction in dollars? Why the cryptocurrency component?
Marketing, plus Dinwiddie thinks of himself as an entrepreneur. Similar to designing his own shoes, wanting to do something his own way.

Offline Donoghus

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If its in blatant violation of the CBA which is partly in part negotiated by his own players union, then he should be subject to sanctions. 

Negotiate it with your union into the next CBA if you're that passionate about it.


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Offline Ogaju

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Why not just do the transaction in dollars? Why the cryptocurrency component?
Marketing, plus Dinwiddie thinks of himself as an entrepreneur. Similar to designing his own shoes, wanting to do something his own way.


Didnt he recruit one of the Cs players away to Brooklyn?