Will The NBA Welcome ‘Fantasy Sports On Steroids?’
- Brooklyn Nets guard Spencer Dinwiddie plans to make himself and $34M contract a digital investment
- An estimated $150B is wagered on sports annually in the U.S.
Spencer Dinwiddie, who averaged 16.8 points and 4.6 assists per game last season for the Brooklyn Nets, is planning an innovative way to make money for his efforts on the court. Dinwiddie wants to use financial technology (Fintech) to allow investors to purchase digital tokens that are secured by his 3 year, $34 million contract extension with the Nets. In addition to a modest return on interest, investors could profit if his next contract is more lucrative than the last, and if the NBA decides to play ball with this alternative way to earn more capital.
Why This Matters: Dinwiddie is involved in the creation of a platform called Professional Athlete Investment Token (or PAInT), and wants to sign up other athletes so that investors can trade the coins of their favorite players. His plan could raise approximately $13.6 million based on his current contract, which could be used immediately for other investments.
Dinwiddie’s plan could raise approximately $13.6 million based on his current contract, which could be used immediately for other investments
Athletes are always searching for ways to diversify their compensation but this isn’t a shoe deal or an insurance commercial. This plan allows players to receive an advance on their NBA player salary and creates a potential market for investors to join in on any future upside.
Situational Awareness: Don’t reach for your wallet just yet. The NBA is not yet on board claiming such activity is an assignment of Dinwiddie’s right to receive his NBA salary in violation of the NBA’s collective bargaining agreement. Dinwiddie plans to sit down with league officials and let them know why he disagrees.
Although creative, this isn’t a completely novel idea. A company called Fantex, which provided a similar market of investing and trading in a pro athlete’s future earnings, never got off the ground and shut down its platform in 2017.