TL;DR: Brooklyn Nets point guard, Spencer Dinwiddie, plans to convert at least part of his $34M contract into what reports are calling a bitcoin-related “digital investment vehicle” in order to “receive an upfront lump payment.” For cryptocurrency adoption enthusiasts, very public personalities choosing to be paid in decentralized digital money is a key step in broadening appeal.
$34M Contract Could be Partially Paid in Bitcoin
Closing the loop is a phrase adoption enthusiasts insist represents a key concept in bringing cryptocurrency adoption full circle. When employees, workers, whomever, choose to be paid in the likes of bitcoin, the theory is acceptance will skyrocket. Whether that is ultimately the case with Dinwiddie’s announcement is anyone’s guess.
He recently scored a three-year deal with the Brooklyn Nets which spreads out $34 million. Dinwiddie’s plan is to convert part of it “into a digital investment and take a lump payment upfront. In short, he’s going to sell bonds in himself to get more money at his fingertips now,” the New York Post explained. There’s been no official confirmation from the basketball star except for a lone tweet shortly after reports surfaced, signaling his interest in the world’s most popular cryptocurrency.
It would be the first of its kind for the National Basketball Association (NBA). The player-driven league has a history of its high paid stars taking bold chances with investments, and many such as LeBron James have diversified into other businesses. Dinwiddie is known as a tech fan and has expressed interest in the crypto phenomenon before. The hurdle, however, is in the NBA’s overall bargaining agreement.
No one seems to be sure if such a move is allowed, and reports are hinting at the arrangement including tokenizing his pay in some fashion. “Dinwiddie’s investors would be paid principal and interest, with his contract covering what he owes,” the Post elaborated. “Of course, the dangers lie in the unlikely event that the deal is voided for conduct. There are also questions about how this would impact the third year of Dinwiddie’s contract, which is a player option.”
DISCLOSURE: The author holds cryptocurrency as part of his financial portfolio, including BCH.
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