Brooklyn Nets guard and NBA star Spencer Dinwiddle revealed in a new update regarding his proposal to tokenize his contract that he would execute the plan either with or without the Association’s consent.
Dinwiddie, as we initially reported, revealed plans to tokenize his $34.4 million contract with the New York side so that accredited investors can buy into the deal while reaping dividends as he sees out the contract.
The NBA, however, hit back at the move, alleging that the Association’s rules do not permit such a move. Dinwiddie subsequently revealed that he would meet the league officials to try and clarify the fundraising mechanism, although the latest update suggests that both parties failed to reach a compromise.
Dinwiddie tweeted on October 13,
We were ready to open (the STO) on the 14th (October) but in the spirit of partnership, we are pushing it back a week to try and allow the NBA sufficient time to respond.
He was also quick to note that the extension of the starting date for the planned token offering is simply because they want to partner with the NBA rather than become an enemy.
“Regardless of the NBA ’s position, we will move forward. Therefore we will launch on Oct. 21st, a week from our original date and before the start of the NBA season,” Dinwiddie added before going on to explain that he is convinced that the planned token offering is in line with regulatory requirements.
For instance, in line with rules by the U.S Securities and Exchange Commission that token issuers provide potential investors with adequate information about an offering, Dinwiddie said that there “will be a bevy of information” at the disposal of the market “and accredited investors (for the first offering).”
Apparently, what the NBA star is trying to pull off would be a first for an individual sports player and possibly set the tone for other athletes to consider going down that path.