Basketball feud escalates as NBL clubs seek $1.5 million in repayments from the Larry Kestelman-led league, return to FIBA
Three National Basketball League clubs are pushing to recoup more than $1.5 million in payments from powerful competition owner Larry Kestelman.
The Perth Wildcats, Illawarra Hawks and South East Melbourne Phoenix were involved in mediation with Kestelman’s NBL on Wednesday.
Two league sources with knowledge of the appeal but speaking on condition of anonymity said each club was pushing for about $600,000 each in back payments for travel costs over the past three seasons.
The three clubs could not comment because of confidentiality. The NBL did not wish to comment.
Under league rules, clubs pay for their own travel and flights, but can then seek reimbursement if the league has made a profit.
Clubs are pushing for major change, arguing the NBL should follow the AFL and NRL, where those competitions pay for travel and flights.
The travel issue has become a major point of frustration for the three clubs, which are also pushing for major change across the league. They are arguing the league should be run by an independent commission or board of governors, although multi-millionaire businessman Kestelman could remain as the figurehead.
This masthead can also reveal the Phoenix, Wildcats and Hawks have launched an appeal over their governance claims to the sport’s world governing body, FIBA, which had referred their initial approach to Basketball Australia, which oversees the sport’s integrity but also has a commercial relationship with the NBL.
In a statement referring to the appeal, FIBA said: “FIBA is aware of the ongoing controversy but will not comment on the matter.”
Other NBL clubs are also following the issue closely, another competition source said.
As reported by this masthead, billionaire businessman Jared Novelly – the Crest Sports boss, majority owner of the Illawarra Hawks and Donald Trump’s US ambassador to New Zealand – and Kestelman have been at loggerheads for almost 18 months.
Crest accused the telco and business mogul of conflicts of interest in his running of the league and queried the distribution of revenue to the competition’s 10 clubs. But on April 13, a seven-month Basketball Australia independent investigation through its integrity unit dismissed Novelly’s formal complaint. However, the league did not release the full report led by former solicitor-general Justin Gleeson, SC, which remains a source of frustration for the three clubs.
Novelly and the Phoenix have also taken action through the NSW Supreme Court where the league successfully denied a bid to have its finances released. An appeal hearing before Chief Justice Andrew Bell, Justice Mark Leeming and Acting Justice John Griffiths was heard last week.
Kestelman has taken action against Crest Sports in the Court of Arbitration for Sport, arguing there has been “a sustained pattern of conduct which gives rise to serious concerns”.
Crest Sports responded in a statement: “As this is an ongoing legal matter, and such arbitration matters must be kept confidential, the Illawarra Hawks and associated parties will not be commenting further at this time, other than to confirm the club intends to vigorously defend its position.
“The club notes that this development is consistent with a pattern of concerning behaviour and decision-making from the NBL in recent matters, raising broader questions around governance, transparency, and process.”
Jon Pierik is a sports journalist at The Age. He covers AFL and has won awards for his cricket and basketball writing.Connect via X or email.