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Bitcoin and the NBA: Spencer Dinwiddie Tokenizes $34M Contract on Ethereum | Crypto News

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Itliker Shadda 6 days ago

$34million is huje contract.. Thanks for updating about this.

Shmily Gul 5 days ago

$ 34 million. It's a very enormous program.

Thanks for updates. 

Justin Dyczewski 5 days ago

This in concept makes perfect sense. Unless there is NBA player strike or the individual player does something stupid that nullifies his contract the $34 million is guaranteed.  Why shouldn't the player be allowed to do what he wants with that contract.

Additionally, the player is selling a bond which is a debt instrument and therefore the interest paid by the player will be a deductible expense on his taxes.

This also makes financial sense for the player from an investment standpoint.  If the player issues a bond at 5% annual interest and happens to make 8% return the player will come out ahead.  However, if the player makes no return he is then discounting his salary by 5% by taking upfront payment. Which doesn't turn out to be 5% as the interest paid on the bond is tax deductible. So the 5% loss would really only be 3% effectively since the player would be in the 40% federal tax bracket (subtract 40% of the 5% interest paid and you get 3%).

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