NBA Retains Outside Counsel As Part Of Stalemate With Spencer Dinwiddie

[RealGM Wiretap]

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. 

Via Shams Charania/The Athletic

[ktzdaman]

Something tells me we will soon see yet another nba player who completely lost all of their millions

[Liberal]

Something tells me we will soon see yet another nba player who completely lost all of their millions

I'm leaning the other way on this. Spencer is an intelligent dude, he will see to it that he gets what he wants, just means compromises are to be made. Also, if he opts-in to his player option than that would clear up that part quite quickly.

[Badbobby]

Something tells me we will soon see yet another nba player who completely lost all of their millions

I'm leaning the other way on this. Spencer is an intelligent dude, he will see to it that he gets what he wants, just means compromises are to be made. Also, if he opts-in to his player option than that would clear up that part quite quickly.

I’d like this to happen so we can fast forward a decade to see if it was a great or shockingly bad idea

[dice]

why can't he just take his paycheck and convert it into digital currency himself?

[Vegeta10176]

Something tells me we will soon see yet another nba player who completely lost all of their millions

I'm leaning the other way on this. Spencer is an intelligent dude, he will see to it that he gets what he wants, just means compromises are to be made. Also, if he opts-in to his player option than that would clear up that part quite quickly.

I’d like this to happen so we can fast forward a decade to see if it was a great or shockingly bad idea

Opting into his player option would defeat the purpose... With this method he could receive the money upfront opt out at the buyers risk..

[Cassius]

I'm leaning the other way on this. Spencer is an intelligent dude, he will see to it that he gets what he wants, just means compromises are to be made. Also, if he opts-in to his player option than that would clear up that part quite quickly.

I’d like this to happen so we can fast forward a decade to see if it was a great or shockingly bad idea

Opting into his player option would defeat the purpose... With this method he could receive the money upfront opt out at the buyers risk..

I think it can work both ways. The best case scenario is that he opts out and splits some of the profit with investors, but I believe the fallback is that he's investing an equal amount (outside of the fund) in some higher yield bonds, so at worst, nobody investing loses money to inflation.

[SlimD235]

why can't he just take his paycheck and convert it into digital currency himself?

i agree. or is that part that's considered 'gambling'

[jeffya2]

Kapernick took a knee
Dinwiddie may lose his head

If the NBA can control the refs
Then they surely can hire an exicutioner

[mastermixer]

why can't he just take his paycheck and convert it into digital currency himself?

I’m no expert but I think I have this straight.

He signed a 3 Year 34 million dollar contract starting this season. The 3rd and final season is a player option for 12.3 million.

The nba does not pay you all that money up front, they pay you in small pieces throughout the life of the contract.

By getting investors to buy into his “digital investment vehicle”, he can leverage that contract to be able to essentially be paid the full contract upfront. With that plan to then invest that money now, instead of waiting 3 years. So now he as a lot more buying power upfront.

The upside for his investors, is he declines the player option and signs a much bigger contract. The investors would get a nice profit.

The nba doesn’t want deals like that being made.

[Robin Jones]

If he goes to bank tomorrow to loan that same sum of money, and then pay the interest to the banks, what's the difference?

That would be gambling on your future income too. This applies to every person who buys an expensive house with a bank loan based on his/her future income. What if this 'normal' person loses his/her job or becomes ill?

[meekrab]

why can't he just take his paycheck and convert it into digital currency himself?

Because that's not what he's doing. He's selling Dinwiddie Coin to investors at a slight discount for dollars upfront; then when his salary is paid out the investors get the money instead of him, which is the problem the league has with it since it's blatantly against the CBA to transfer future contract payouts to other people.

[dice]

why can't he just take his paycheck and convert it into digital currency himself?

Because that's not what he's doing. He's selling Dinwiddie Coin to investors at a slight discount for dollars upfront; then when his salary is paid out the investors get the money instead of him, which is the problem the league has with it since it's blatantly against the CBA to transfer future contract payouts to other people.

so how is that any better than, say, taking out a loan from his perspective? certainly the nba can't prevent him from taking a loan from somebody for future payment w/ interest when he gets his salary