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Securitizing athletes and celebrities talent

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  • Securitizing athletes and celebrities talent

    Thought you guys would enjoy this one.

    https://www.espn.com/nba/story/_/id/27853850/how-investing-150k-spencer-dinwiddie-actually-work

    "The idea of athletes or celebrities securitizing their talents has precedent. In 1997, musician David Bowie worked with an investment bank to sell "Bowie Bonds." Investors were paid a fixed annual return of 7.9% over 10 years for bonds that were backed by Bowie's intellectual property -- in other words, his recordings and songs -- and his rights to royalties. Chicago White Sox slugger Frank Thomas took a long look at securitizing his contract in 1998, but the plan got hung up over skittishness about clauses in his deal that would nullify the contract for scenarios like a non-sports-related injury or player strike.

    Dinwiddie plans to offer what he has named his Professional Athlete Investment Token (PAInT) as soon as this week. The offering has a minimum investment of $150,000, and it would be available only to accredited investors on a new platform that he hopes will eventually host dozens of athletes who follow his lead."

  • #2
    I've been following this story for the last year, and I remain extremely skeptical that this will ever get off the ground, for the simple reason that it's expressly forbidden in the standard NBA contract to promise future earnings to a third party. No matter how he spins it or how much he escrows, the yield of the security is directly dependent on the money paid by his contract.

    I also think it's a fairly risky investment decision on his part; the only circumstance in which the yield paid out by his security is reliably less than what he could reasonably hope to achieve investing in traditional investments is if he makes a catastrophic error in his career by declining his player option but not having a team willing to pay him and he ends up with a smaller contract than if he had picked up his option. If that's the case, losing millions from a poor contract decision far outweighs any profit he would make from having extra money to invest upfront.

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    • #3
      Based on his recent tweets supplicating himself to the Chinese Communist Party, is there any way we can short King Lebron?

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      • #4




        Based on his recent tweets supplicating himself to the Chinese Communist Party, is there any way we can short King Lebron?
        Click to expand...


        The fallout has been spectacular. Especially those who wouldn't hesitate to comment on American politics because it wouldn't affect their bottom line. Now all of a sudden, Lebron says that he "isn't a politician". This was a real opportunity for those who were vocal before to really walk the walk and none of them did.

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