Athletes are respected by many across the world for their hard work, their endurance, and their ability to push the boundaries in sports and other aspects of life. People idolize athletes for many different reasons, and athletes have a profound impact on how people live each day and go about their experiences.
The fact is that it is simple to view athletic prowess on television and be immersed in the game than comprehending esoteric text from an intellectual. Satoshi's whitepaper might be fascinating after several reads but what's more compelling than a dunk by Shaq or three-pointer by Dirk or Jordan? There's more simplicity and much less complexity in the game.
It is easier to get involved in the physical nature of sports and raw power and emotion invested in activities that might range from soccer to basketball or football. Sports also allow us to get involved by watching games with friends and family, playing our pickup games or in recreational leagues, and by acting as a manager and playing fantasy sports. Further, we can get as involved in sports as we want to be by following the passing yards, or the running yards, measuring performance and ability to move the overall team forward.
We respect people like Marshawn Lynch "Beast Mode" because of how they overcome obstacles and use their running styles and consistent abilities to be the greatest in their careers. We follow athletes and live vicariously through them, feeling a jolt of excitement when our favorite athletes score a touchdown or craftily kick a soccer ball into a net.
It's not about the simple act of passing the ball or stealing it from another player that enthralls us; it's the overall strategy, the fact that each minute counts and that it all adds up to a potential championship.
Of course, the audience at home may be invested in the game in more ways than one, emotionally as well as financially. Traditional betting, predictions, and other platforms allow individuals to invest in the outcome of an event in some form or fashion. But for some, these traditional methods of investing in sports might not be enough, and for those, there are new options.
An audience might have more to gain from sports besides pure joy and money from small bets, and they might be able to invest in their favorite players with new types of contracts tied to bitcoin or tokenization in general.
We'll take a look at some of these different forms of contracts and what players have had to say on bitcoin and other cryptocurrencies.
Spencer Dinwiddie and the Bitcoin Contract
Spencer Dinwiddie is a point guard who plays for the Brooklyn Nets, a National Basketball Association member. He's not just a solid point guard but also plays other roles in life, such as being an entrepreneur and investigating different ways to enhance his life and career.
The basketball player just recently tweeted "BTC" teasing a potential foray into the bitcoin sector in some form or fashion. Later, publications noted that Nets' point guard is investigating a way to turn a portion of his $34 million-dollar contract into another offering that provides him with the ability to essentially immediately forward a lump sum of his total contract into his bank account.
The deal would work as such; Spencer Dinwiddie would conduct a variation of an Income Sharing Agreement (ISA) and issue a personal bond. Typically, corporations sell bonds to raise money and conduct operations. The entity which issues bonds ask for money now and gives it back a little later on. It offers coupon payments (interest) regularly plus the original principal back after a set amount of time (1-10 years or more).
Personal bonds are a fascinating concept and have yet to occur within the NBA. Securitization of NBA contracts has yet to happen, and if Spencer Dinwiddie accomplishes this offering, it will be the first in NBA history. What's even more fascinating about this offering is that it would occur in a fashion where he would use a digital coin that should guarantee the holder of the coin rights to his future income.
Spencer would tap into such an offering to get more cash upfront to invest it into ventures and bring about more opportunities for increased cash flows. Dinwiddie and other players are looking at more ways to evaluate their situations and utilize their present earnings to create safety nets that will last, allowing them more financial freedom.
Information is still needed when the contract will be released and on who can invest. We do not yet know if it is just for accredited investors or for the general population. We also do not have all of the details on how much the initial buy-in is for this agreement and the potential payment outlook.
Further, a prospective investor would also need to know the minimum guarantee and overall rights before investing in such a deal. If this deal takes place, it will likely be as a security token. If so, then it might be restricted to accredited investors and might involve entities such as tZERO, Galaxy Digital, and others that seek to bring about more security tokens.
Keep in mind that this is not exactly the first of its kind from a fundamental standpoint in sports. A company by the name of Fantex, launched in 2013, to allow investors trade shares tied to the future income of athletes. Famous football athletes from Arian Foster to Vernon Davis engaged with the firm and deals occurred from October 2013 to April 2016.
But as reported by Fortune, Fantex has closed its platform, but dividends for a few of the players still flow to investors. The firm closed its platform due to a lack of investor trading appetite. It shows that fans have an interest in holding these kinds of investments but might not have as much interest in trading them regularly.
The ZB Take
The blockchain allows for new types of interactions between different entities like athletes and fans or celebrities at large and their future income. We know that these interactions are not entirely new. It is enhanced through the power of distribution, access, reach, cost minimization, and other features brought about by compelling technological advancements through the blockchain.
About ZB Group
ZB Group was founded in 2012 with the goal of providing leadership to the blockchain development space and today manages a network that includes digital assets exchanges, wallets, capital ventures, research institutes, and media. The Group’s flagship platform is ZB.com, the industry leading digital asset exchange. The platform launched in early 2013 and boasts one of the world’s largest trading communities.
ZB Group also includes ZBG the innovative crypto trading platform, and BW.com, the world’s first mining-pool based exchange. Other holdings include wallet leader BitBank, as well as exchange brands ZBM, ZBX and Korea’s Bithi.
Industry intelligence and standards are headed by the recently launched ZB Nexus who embody the core values of ZB Group and open source their reports and analysis for the public.
Learn more about ZB Exchange by visiting www.zb.com.