Author Topic: Spencer Dinwiddie tokenizes his contract  (Read 305 times)

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Spencer Dinwiddie tokenizes his contract
« on: October 22, 2019, 03:10:28 PM »

Offline byennie

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This one hits close to home for me, fascinating stuff! TL;DR; Spencer Dinwiddie is attempting to tokenize his NBA contract and sell shares (bonds) to accredited investors backed by his guaranteed money with Brooklyn.

https://www.espn.com/nba/story/_/id/27853850/how-investing-150k-spencer-dinwiddie-actually-work

Re: Spencer Dinwiddie tokenizes his contract
« Reply #1 on: October 22, 2019, 05:06:21 PM »

Offline bdm860

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To me, sounds 2 things are going on:

No matter how "innovative" they try to make it sound, Dinwiddie is taking out a 3 year loan (well up to 90 loans).  Give him 150k now, he'll give you $3,750 a year for 2 years in interest, and in year 3 he'll pay you back your original $150k, plus 40% of his post tax contract in year 3 (divided among the 90 shares).  Expect annual returns of 7%-10%.   I have to imagine several players across the league have various loans for business they try to start, it's called leverage.

The deeper, and really innovate thing, is he's trying to start (and profit from) the platform where all athletes can take out "loans" like this and these loans can be traded on the secondary market.  Now that's interesting.

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