Proposed Tokenized Contract Moving Forward
Following many months of discussion, revision, and proposals, Spencer Dinwiddie, Brooklyn Nets’ Point guard, is moving forward with the tokenization of his NBA contract in a first-of-its-kind investment vehicle.
The 3-year $34 million contract won’t be tokenized in its entirety however; Dinwiddie plans to tokenize $13.5 million, sold as SD8 tokens (Spencer Dinwiddie #8). The current plan will sell 90 SD8 tokens at $150k per token.
While this is a first in sports contract tokenization, the current offer is only available to accredited investors in an effort to create the least amount of friction with the league as well as regulatory and compliance measures. Earlier this year, the NBA had threatened to terminate Dinwiddie’s contract if he was to proceed with a previous tokenization model, which provided significant dividends to investors if Dinwiddie opted out of the final year of his contract in 2021.
“Pretty much what they said was that the player option was gambling and that would’ve been cause for termination,” Dinwiddie stated in an interview with Forbes.