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In September, Brooklyn Nets guard Spencer Dinwiddie announced his plan to cash in early on his 3-year, $34m contract extension by turning it into a digital investment channel.
According to ESPN, the biz-savvy player’s venture would allow him to raise millions in cash at the beginning of his contract that he could then shoot into other investments. And the Nets’ breakout star wants to launch it this week if possible.
Timeout! What exactly does this mean?
Dinwiddie’s short-term plan aims to offer investors a Professional Athlete Investment Token (supported by his earnings in the 2021-22 season) — even better, the basketball biz-head is abbreviating the Professional Athlete Investment Token as PAInT.
The minimum token investment is $150k, and Dinwiddie is offering a cap of 90 tokens to be acquired (which reportedly amounts to about 40% of his 3-year contract).
Described as “fantasy sports on steroids,” Dinwiddie’s ultimate goal is to enable people to invest in and trade players the same way they would the stock market or with other securities, on a platform that he’s in the middle of building.
“We envision a world where you’re gonna be able to trade a Spencer for a Kyrie [Irving] for a [Kevin Durant],” Dinwiddie said.
But the NBA’s going hard on the PAInT
The NBA said the idea conflicts with the league’s collective bargaining agreement, which prohibits arrangements that shift a player’s salary to a third party. But Dinwiddie claims he’s doing nothing of the sort.
Now, after weeks of back-and-forth with the league, Dinwiddie is reportedly optimistic that he has been able to clear up confusion surrounding the venture’s business model. But, ultimately, it’s up to the ref to decide.