After a sizable delay and numerous run-ins with NBA executives, it now appears that Brooklyn Nets point guard Spencer Dinwiddie will get to bring his tokenization strategy to the market. Dinwiddie took serious heat from the league when he announced plans to tokenize a portion of his contract. Now, after almost three months of delays, Dinwiddie’s token-based investment tool prepares to enter the market.
DREAM Fan Shares
Dinwiddie wants to let his fans own a portion of his contract via the DREAM fan shares platform. This blockchain-based tokenization strategy would allow Dinwiddie to digitize a portion of his contract. These tokenized shares would then be made available to fans seeking to increase their stake in the athlete’s career.
According to Dinwiddie, DREAM shares are set for a January 13th launch date. The date will coincide with Dinwiddie’s first career All-Star Game. In this manner, Dinwiddie can couple the publicity to further promote his unique tokenization strategy.
As part of this strategy, Dinwiddie seeks to sell 90 SD8 coins. Each coin represents a tokenized share in his $34 million contract. If successful, Dinwiddie will be able to collect up to $13.5 million of his guaranteed three-year agreement without having to wait until the final years of the contract. In essence, the agreement provides him with a new age business loan.
NBA Officials not Pleased
For their part, the NBA has been unapathetic towards the young player’s decision to tokenize his contract. These disagreements with the NBA came to a head when the league threatened to terminate his contract and ban him from the league during negotiations. Luckily, Dinwiddie instituted some changes to his strategy which alleviated much of the league’s concerns.
One of the main problems the NBA had with Dinwiddie’s original strategy had to do with his final years. In the original agreement, Dinwiddie wanted to provide his investors with a chance to make larger dividends if he were to acquire a more lucrative contract with Brooklyn or another team. This section struck NBA officials as problematic with some calling it gambling. Officials were so concerned they threatened to terminate his contract if the clause wasn’t removed.
After four intense negotiations in person and three additional correspondences over the phone, Spencer Dinwiddie was able to secure league approval for his concept. Discussing the decision, he admitted that he never expected the league to support his idea fully. Luckily, he had some strong support for the plan from the Players Association. Also, he had a team of lawyers by his side to ensure that his rights were not violated.
Dinwiddie Just Changed the Game Forever
It’s not too often that a single player changes the game forever, but in this instance, Dinwiddie has utilized blockchain technology to provide more liquidity in the market. You can expect to see DREAM shares start to tokenize more athletes and entertainers’ contracts in the coming months. In this way, these individuals can cash out their multi-million dollar agreements without waiting years to do so.