NBA's Spencer Dinwiddie using his Nets contract for a 'digital investment vehicle:' Report
Thinking of investing in your future? How about Spencer Dinwiddie’s instead?
The Brooklyn Nets point guard is reportedly planning to sell digital tokens tied to his $34 million contract extension, or at least part of it. The Athletic was first to report on Dinwiddie’s plans.
The move would raise a pile of cash that Dinwiddie would be able to invest up front, rather than waiting to be paid his salary over the next three years. If his investments work out, he could end up with income streams lasting well beyond 2022.
Investors in Dinwiddie’s offering would be paid principal and interest, according to the report.
Dinwiddie, who describes himself on Twitter as “a tech guy with a jumper,” has expressed interest in cryptocurrencies before. He tweeted the symbol for Bitcoin Thursday night.
He wouldn’t be the first professional athlete to let investors buy into his brand. A San Francisco-based company called Fantex offered what it calls “athlete tracking stocks” tied to NFL players including Vernon Davis, Mohamed Sanu, Alshon Jeffery and Michael Brockers. An “IPO” the company planned with Arian Foster never panned out.
But the company’s trading volumes never really picked up, which didn’t work for its commission-driven business model, the Financial Times reported in 2017.
Fantex listed its last public offering in 2016, but it has reported twice-annual dividends for investors since.
Dinwiddie is planning to start his own company to sell the offering, according to the report. So he wouldn’t be relying on the same revenue streams as Fantex.
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