Spencer Dinwiddie of the Brooklyn Nets wants to tokenize his $34.4 million three-year contract. However, the NBA officially banned this plan. The NBA issued a statement that the plan proposed by Dinwiddie violates the NBA’s collective bargaining agreement and the NBA player expressed disappointment in personal Twitter.
I love the @NBA it is the greatest league in the world. And it is an honor to be their partner. But to put this quite simply I’m not assigning my contract and have been explicit in that when I’ve spoken to them.
— Spencer Dinwiddie (@SDinwiddie_25) September 27, 2019
Dinwiddie is considered to be an athlete that is quite supportive of cryptocurrency. In mid-September, he revealed that he intended to sell his player contract from the Nets to the token “$SD8.” After the proceeds from the fundraising, it will be used for other investments and the principal and interest of the token investors will be paid by Dinwiddie’s contractual remuneration.
However, the NBA prohibits Dinwiddie’s actions because players cannot transfer contractual compensation to third parties under collective bargaining agreements. He indicated that he would continue to discuss with the NBA officials to clarify the misunderstanding. He also said that he had discussed this with the lawyers and the NBA official and NBA player associations.