The NBA has hired outside legal counsel as they continue to fight Spencer Dinwiddie's attempt to convert his contract into a digital token. The NBA wants to find a common ground with Dinwiddie on the idea, but they could subject him to penalties such as contract termination or suspensions without pay and fines if he goes through with his investment vehicle as currently constituted.
“At the request of Spencer Dinwiddie and his advisors, we have reviewed a number of variations of their digital token idea,” Dan Rube, the NBA’s Executive Vice President and Deputy General Counsel, told The Athletic. “All of the ideas presented would violate collectively bargained league rules, including rules prohibiting transferring a player’s right to receive NBA salary, gambling on NBA-related matters, and creating financial incentives to miss games.”
The NBA initially said Dinwiddie couldn't assign his salary as a third-party transfer, but he owns the company handling the investment plan.
During a second meeting, the NBA said the issue is Dinwiddie's $12.3 million player option for 20-21.
Dinwiddie and the NBA are now at a stalemate with his third-year player option now being considered a "token" toward gambling.