NBA Rules Nets' Dinwiddie Unable To Sell Shares In His Contract
The NBA notified Nets G Spencer Dinwiddie that he "cannot use his contract as a digital investment vehicle," according to Marc Stein of the N.Y. TIMES. Dinwiddie last week announced that he "planned to go public with an '$SD8' token offered by his company DREAM Fan Shares that would enable investors to essentially buy into" Dinwiddie's three-year, $34.4M contract. By selling shares in his contract, Dinwiddie "would have allowed investors to bet on whether he would be able to play well enough to earn an even more lucrative contract after the second year of his deal." However, the described arrangement is "prohibited by the CBA." Dinwiddie "intended to offer the security using the Ethereum blockchain" and "planned to guarantee investors a few percentage points in interest over the three years of his deal." Dinwiddie said that he "planned to meet with league officials to try to change their minds by further explaining the investment concept" (N.Y. TIMES, 9/28).