Lyric discussion by misha01 

It's about a basketball star in a small town.

@misha01 It's a song about the star player in a summer basketball league. Bruce is a huge fan of basketball, mostly U. of Virginia. Rainbow is a term for a long jump shot, and making such a shot is sometimes said to be "knocking it down". A guy who can really jump high might be able to pick a dime off the top of a backboard. "Throwing it down" is a dunk. People might show their support by contributing money in a hat or collection plate.

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