A Deepening Conflict in the NBL
The ongoing dispute between the Illawarra Hawks’ majority owner and NBL owner Larry Kestelman has taken a new turn, with the latter being cleared of wrongdoing by an independent investigation. The conflict has sparked concerns about the integrity of the sport and its governance.
Jared Novelly, the American majority owner of the Illawarra Hawks, had lodged a formal complaint against Kestelman, alleging conflicts of interest and unfair revenue distribution among the league’s 10 clubs. However, Basketball Australia (BA) recently revealed that an independent investigation led by barrister Justin Gleeson found no credible evidence to support these claims.
Gleeson’s report concluded that there was no evidence that any of the NBL clubs were disadvantaged by Kestelman’s management. He consulted with all 10 clubs during the process, and none raised concerns about their treatment under Kestelman’s leadership.
Despite this outcome, Novelly remains unsatisfied. He continues to challenge the findings and is pushing for transparency. His parent company, Crest Sports and Entertainment, released a statement questioning why the full report had not been made public and urged FIBA to step in.
Crest argued that the lack of transparency undermines confidence in the process and suggests a cover-up. The statement said:
“Until the report is released in full, how can anyone have confidence in the process or the outcome? Burying it shows a lack of respect for players, owners, fans and everyone involved in the game.”
Novelly also highlighted what he sees as clear instances of self-dealing and conflicts of interest, which he believes have tarnished basketball in Australia. He previously escalated the issue to FIBA, which deferred the investigation to BA.
Kestelman’s Role and Legacy
Since taking over the NBL in 2015, Kestelman has been at the center of several controversies. He has held equity in three of the league’s clubs, though he has since sold his shares. Additionally, the NBL has engaged in partnerships with brands such as Reebok and Foot Locker, in which Kestelman had a financial stake. The league also granted merchandising rights to a clothing label founded by his son.
In 2023, the NBL relocated its Melbourne offices to a building owned by Kestelman’s property group, further fueling speculation about potential conflicts of interest.
However, Kestelman has defended his actions, stating that the investigation vindicated him. He emphasized that he has worked for 15 years to rebuild and grow the NBL, acting in the best interests of Australian basketball.
“I’m pleased this matter is now behind us, and that my name has been cleared,” he said. “I have worked extremely hard to repair and grow the NBL for the last 15 years and have always acted in the best interests of basketball in Australia.”
Moving Forward
In response to the controversy, the NBL has announced plans to work with BA to strengthen its governance structures. To support this effort, the league has hired Professor Graeme Samuel, who will join the NBL board. Samuel has a strong background in sports governance, having served on the Australian Rugby League and AFL commissions.
This move signals a commitment to improving transparency and accountability within the league. While the investigation has cleared Kestelman, the broader debate about governance and fairness in the NBL is likely to continue. For now, the focus is on ensuring that the sport remains credible and sustainable for future generations.
