Basketball player and Nets’ sixth man Spencer Dinwiddie is reportedly looking to put his professional contract into a digital investment vehicle.
Professional Contract as Collateral
According to a report by The Athletic, Dinwiddie’s deal, which he agreed to during last season, is to be used as an investment vehicle via a digital token offering with Dinwiddie receiving a lower amount upfront.
The 26-year-old signed a 3-year, $34 million contract that comes into effect in the upcoming NBA season. He is scheduled to earn $10.6 million over the next season, $11.4 million the following season, and $12.3 million the year after that.
Dinwiddie is looking to forego some of his future compensation to receive a lump sum sooner. The basketball player plans to raise money from investors by using his contract as collateral – making this a first for a digital offering. By leveraging a digital smart contract, he can give investors tokens and pay them out as his contract is being fulfilled.
Whatever amount Dinwiddie manages to raise through this method, he could use it immediately to invest in any way he chooses. Looking at his Twitter, it seems he might want to invest in Bitcoin (BTC).
— Spencer Dinwiddie (@SDinwiddie_25) September 13, 2019
Athletes in the Cryptocurrency Industry
Dinwiddie started getting interested in cryptocurrency — mostly Bitcoin — in the summer of 2017, as BeInCrypto previously reported. The Nets star made his first Bitcoin buy in the neighborhood of $3000 to $4000, and remains one of the few professional athletes publicly sharing their interest in the cryptocurrency.
As to why Dinwiddie would go for securitizing his deal contract, the business-minded athlete might see an opportunity to capitalize on a likely bull run for Bitcoin, catalyzed by the upcoming block reward halving in 2020.
In another Bitcoin-related headline, football club Watford, playing in the English Premier League, agreed to display the Bitcoin logo on their shirt sleeve in a sponsorship deal with Sportsbet.io.
Lately, a lot of investments from the sports world are flowing into the crypto space. Is Dinwiddie a Bitcoiner and eager to ride the bull run? Let us know what you think in the comments below!
Images courtesy of Twitter, Shutterstock.