Anyone got Australian subscription?

Keen to read this

I think some of the way the NBL media is is a bit toxic and maybe there are some biases, but a rising tide lifts all ships, and the NBL has been rising every year since Larry took over. I am not too confident that continues under new leadership or a coalition of the most disgruntled teams.

Interesting timing on a couple of levels

Code Sports are reporting
Donald Trump ally and Illawarra Hawks owner Jared Novelly plotting hostile takeover of NBL.

Novelly claims seven other owners are behind him.

Actually seven clubs in total excluding Tasmania. It's fair to say the others would be LK's United and NZ (since they are changing hands at the moment).

Larry Kestelman, who has revitalized Australia's National Basketball League (NBL) since 2015, is facing a significant challenge to his leadership. Jared Novelly, owner of the Illawarra Hawks and a close associate of former U.S. President Donald Trump, has initiated a hostile takeover bid for the NBL. Novelly's proposal includes a $9 million cash payout to Kestelman and recognition of his contributions, such as potentially naming a trophy after him. This move comes amid concerns about financial transparency and distribution inconsistencies revealed by KPMG audits. The timing is particularly contentious, occurring just days before the NBL's grand final between Novelly's Hawks and Kestelman's Melbourne United. ​

In a related development, Kestelman recently sold the Tasmania JackJumpers, the reigning NBL champions, to Brisbane-based private equity firm Altor Capital. Altor Capital will initially acquire a 51% majority stake from mid-2025, with plans to assume full ownership in two years. The sale is valued at $35 million, with 25% of the net profit to be distributed among all NBL teams, amounting to approximately $900,000 per franchise. Kestelman expressed pride in the JackJumpers' achievements and is committed to supporting the team during the transition.

FYI - Sometimes if you put links in chatgpt it might bypass subscription. Not always though.

FYI - Sometimes if you put links in chatgpt it might bypass subscription. Not always though.

"... Former U.S. President Donald Trump"?

A bit behind the times, aren't they?

Been brewing and now a bigger dog is in the hen house

The money hasnt been flowing to the teams as it should have. Teams need media and merchandise $ to survive.

You cant have a league owner have so much vested interests directly in the teams as he does without raising some serious concerns of probity

Uluc saying the email got sent to a representative from every other club but Adelaide.

"The email was sent to Brisbane Bullets owner Jason Levien, Perth Wildcats owner Mark Arena, outgoing New Zealand Breakers owner Matt Walsh, Kings owner Robyn Denholm, South East Melbourne Phoenix owner Romie Chaudhari, Sydney Kings minority owner Paul Smith, Melbourne United owner Chris Moore, United Chairperson Mike Symons, and Cairns Taipans president Troy Stone."

https://www.espn.com.au/nbl/story/_/id/44335932/hawks-owner-proposes-hostile-takeover-nbl

No you know who is paying the bills in Adelaide

Oh and Tasmania, read 8 names, didn't notice that there was 2 Melbourne names.

It's tough at the top, always having ambitious people nipping at your heels. LOL

Please find below a statement from NBL Owner and Executive Chairman Larry Kestelman:


We remain fully committed to the continued and unprecedented growth and success of the NBL.


The NBL is not for sale.

https://nbl.com.au/news/statement-from-larry-kestelman

lol

This could get ugly. Where's the popcorn?

So one American owner, with a head coach that doesn't get his own way is now throwing a tantrum.
By being listed as receiving an email does not imply a revolt.
It’s strange but it appears there is a new world order, where if someone’s not happy they demand you sell/give your property to them so they can run things their way.

Exactly what the NBL needs

Some American, whose claim to fame seems to be inheriting the wealth of his oil mogul father, buying the league off the guy who's returned the NBL to it's former glory (and then some) over a decade of hard work

How about a big "p!ss off".

Well said Larry.

The timing of this email just before his team takes on LKs in the GF decider is interesting.

The Hawks guy is in a no-lose situation as I see it.

If Hawks win, he can then say "look what we did with limited resources; imagine what we could do if we were running the league"

If United win, he can say “not suggesting anything but ... this is why we need change”


And LV, you put it so well!

There are a million moving parts here. The back stories are elite.

LV is spot

Exactly, LV, as the former great rugby league coach Jack Gibson used to say, if it ain't broke, don’t fix it.

woops spot on.

Another rehash of the story from ESPN.

Hawks owner proposes hostile takeover of NBL.

Illawarra Hawks owner Jared Novelly has deployed a hostile takeover of Australia's National Basketball League [NBL] in an attempt to oust current league owner Larry Kestelman.

In an email sent to nine other team owners on the evening of Thursday, March 20, Novelly informs his counterparts that he would be filing "multiple actions" against NBLCo by the end of the month, with an attached draft term sheet proposing Kestelman sell all his shares equally (10%) among the league's 10 teams.

"I am taking one last shot to try to allow the current ownership to leave peacefully while saving face and reputation," Novelly opened with in his email, which was obtained by ESPN.

The email was sent to Brisbane Bullets owner Jason Levien, Perth Wildcats owner Mark Arena, outgoing New Zealand Breakers owner Matt Walsh, Kings owner Robyn Denholm, South East Melbourne Phoenix owner Romie Chaudhari, Sydney Kings minority owner Paul Smith, Melbourne United owner Chris Moore, United Chairperson Mike Symons, and Cairns Taipans president Troy Stone.


"I apologize if this initiative offends you," Novelly continues. "That is very far from my intent, but I'm not willing to let the status quote continue and I see this as a reasonable path forward."

Novelly lists "secret Ambassador Agreements, gambling revenue, the sale of the JackJumpers, integrity concerns and financial transparency" as among the major concerns he has with Kestelman's ownership of the NBL, and cites a KPMG Report that "reveals that there is a history of NBLCo calculating the Club distribution incorrectly, the significant profits made by LK Group companies from NBL related activities, discrepancies with related party transactions and opaque procurement processes which benefited LK Group entities".

"We remain fully committed to the continued and unprecedented growth and success of the NBL," Kestelman said in a statement provided to ESPN.

"The NBL is not for sale."

An ownership group led by Novelly bought the Hawks in 2020, and the American is also a shareholder in the East Asia Super League. In January, U.S. President Donald Trump announced Novelly as the next ambassador to New Zealand and Samoa. He is the son of Apex Oil mogul Paul Novelly, who passed away in February.


Illawarra Hawks owner Jared Novelly has deployed a hostile takeover of Australia's National Basketball League in an attempt to oust current league owner Larry Kestelman. Emily Barker/Getty Images)
Kestelman is a Ukrainian-born, Australian businessman who's been the majority owner of the NBL since 2015.

Tensions between the two billionaires have been brewing for some time, sources said, ultimately leading to this explosive email.

This takeover comes just days out from Game 5 of the 2025 NBL Championship Series - which features Novelly's Hawks - which tips off on Sunday in Wollongong.

Both Novelly and the NBL have been reached for comment.

The draft term sheet from Novelly proposes all 10 teams would purchase all shares of NBLCO, which each team (except for the JackJumpers) contributing $1 million each, for a total of $9 million cash payment to Kestelman. As part of the proposal, Kestelman would retain all proceeds from the sale of the JackJumpers.

The draft term sheet details an ownership structure where each team has the right to appoint one director to the board of "LeaguesCo", which is the proposed special purpose vehicle that would purchase the NBL, that all teams would have an equal share in.



As part of the proposal, Novelly offers gestures of recognition to Kestelman for his role in developing the NBL. The suggested gestures include: "providing Larry with an ongoing position (such as Honorary President) or naming a trophy or any future in-season tournament after Larry (e.g. the Larry Kestelman Cup". Novelly continued: "We consider that this would be a gesture of good-faith that would allow us and Larry to manage the public perception of the transaction".

Novelly's desire in restructuring the ownership of the NBL, he says: "...will ensure continuity in the operation of the league while the governance structure is reshaped."

The shareholders agreement proposed by Novelly would see revenue from the sale of expansion licenses be split 50/50 among 'LeaguesCo' and the league's teams. It also details how it would want "specific reserved matters" to require at least 70% approval from the board nominees of the teams.

He does make good points. LK did save the league but needs to decide if he's going to run the league in an ownership capacity like a Vince McMahon (bad analogy but best I could think of), or becoming an owner of a franchise.
For years there's been smoke and mirrors about how many pies he's got his fingers in, true value of teams and the conflict of interest he has. Now a couple of teams have sold so the base rate for a franchise is $35 million.
In an ideal world there should be an independent commissioner like a Silver who answers to the owners, but also has the power to control them as well.
Now we don't know how much LK has sunk in over the years, but $9M from owners (does Larry have to pay as owner of United? so should be $8M), $35M from JJ sale plus ownership of United which would be worth more than the recent sales, so let's say a conservative $46M, and it comes to $90M. Would say that's a decent return from what he may have been putting in.
The next step in all of this will be what Novelly proposes if as it sounds LK is telling him to piss off. Will he try and form a breakaway league, which is a textbook Trump idea. Would never work, as said, it's not broke, maybe a little scratched, so other owners will never jump ship.
If anything I hope it does create dialogue that LK does need to step away in some form and create a new structure and strategy for the league. But because there's a tangled web in terms of how much he's involved in teams like Adelaide for example, it could cause a chain reaction if it all comes out. And if he takes offence to this "takeover", what will happen when things hit the fan, can the kids survive when Dad takes away the safety net?
Best case imo is Adelaide goes on the market and fans don't have to put up with the endless meddling.

A lot good points as well Phantom when you look at it that way. I've always followed the loyalty line and LK is the saviour but you’ve pointed out probably a much fairer system.

ffs Larry owns the competition in which the teams compete and has interests in some of the teams. There would be no league if it were not for him. The owners get the right for their team to participate in the competition nothing more nothing less. Whatever revenue streams he gets from owing the competition are his to do with as he pleases. If he helps out some clubs more than others that might not be seen as fair but it is his prerogative. He is in essence a benevolent dictator. He doesn't have to share his revenues with clubs. He just chooses to do so because he wants the league grow and thrive. It is his passion not a business. That is all a win win for everyone as both the clubs and the competition grow in value over time under Larry’s astute stewardship. What is being offered is in any event ja pittance. The league is worth the present value of its future revenue streams which includes what will become very substantial media rights. He can also replicate what he has done with the JJs as many times as he wants and there is $35 Million plus to be gained each time he chooses to do so. This is like key employees of a company wanting to buy the company because they don’t like how much the boss is sharing with them or how not everyone gets the same remuneration. It is just a joke and Larry is showing great restraint in not saying anything more. But as LV says I expected what he is thinking is best summed up as just "piss off".

Interesting this takeover bid was launched right when the NBL's broadcast deal is expiring.

Typical yank. All the heavy lifting has been done by Kestleman, now Novelly thinks he can just waltz in and take over. I'd be telling him to more than piss off.

Wasn't the proposed idea for all 10 teams to buy 10% so all things are equal. Ratter than having the Larry own the NBL, and have invested interest in certain teams. Seems like typical media blew it out of context. I understand this concept makes no sense for expansion teams, but it does make sense for fairness within the league at this present time.

Larry is a legend for saving the league. However now it is looking good there needs to be:
A) Greater transparency especially financial
B) Sell ownership of Melbourne if he wishes to continue in charge of the league, no-one can argue a conflict of interest, even it is perceived
C) Back to transparency, either divulge financial interests in other clubs or mandate they must become financially stable in their own right. Again that conflict of interest.
D)Round table of all owners to discuss basically everything, rules, gripes, ideas, conflicts of interest, sponsorship, scheduling
E)Share the direction of the league, not a vague rumour of expansion every year, and ensure every club has a financial base for further success.

Yes Larry can do what he wants, basically so can Trump and Putin ATM. He's built it to where it is today, time to see how it copes. The more he doesn't suggest there are still a lot of skeletons he doesn't want out there.
To be perceived as the second best league in the world it shouldn't have one person ruling over everything. At least have a dialogue instead of a blanket, the NBL isn't for sale.

Just like the Greenland Politician. I'll put into words you will understand Mr Novelly. F**k Off

Yes, lets go back to a model which promotes in fighting between clubs because they are then left to run the shop and no-one will the be able to agree on anything due to vested interests. Oh, and yes let's go back to a model where the big clubs could decide they want a super league again and vote the smaller clubs out of existence like in the 1990s. And yes, let’s make the owner of the shop sell the thing to all the key employees for a pittance so they are all happy and think everything is fair.

Last time all the clubs had equal say you had Marvin vetoing everything and pushing his weight around. No thanks.

Got some Larry fan boys up in here. Do you all think its within the code of ethics for the owner of the NBL to have an invested interest in teams. Not just Melbourne United, but every new team they establish? If I am not mistaken, it would be very beneficial for Larry's new teams to do very well eg Jack Jumpers to then sell the team and dip out with huge profits.

KL, they seem to be doomed to some circle of NBL life. Forget how it was, so decide to try it again. Great in theory, but obviously you can remember those days, and as PW says, the bigger clubs held everyone else to ransom.

Presumably comes down to contracts between LK and each ownership group that subsequently bought in. But as a default, I don't begrudge LK the advantage and power because he took the risk and invested when the league was very shakey, and re-invested since to build a more professional position. Not many at the time thought he could do it. I don't think I viewed it favourably, but the results have been there.

Jack Jumpers to then sell the team and dip out with huge profits.

OCRed version of he hideous scan above:

Dear Fellow Owners,

I will be filing multiple actions against NBLCo by the end of the month.

I am taking one last shot to try to allow the current ownership to leave peacefully while saving face and reputation.

I will be sharing this draft offer with NBLCo tomorrow, but wanted to share it with all of you first as it certainly effects you and requires you to forgo some revenue and come out of pocket. I apologise if this initiative offends any of you, that is very far from my intent, but I'm not willing to let the status quo continue and I see this as a reasonable path forward.

I have circulated this with a subset of owners already and the question came up of if someone is not
willing to participate with league ownership. While I could backstop anyone who does not want to own a fair share of the league, I believe that is equally as bad as the current structure.

I would propose that anyone's 10% share that does not want to participate could be sold to an
unrelated third party, be it IMG, a broadcaster, another league or even just a sports investor.

Term Sheet for proposed buy-out of NBLCO

In early January 2025 seven of us voted to determine a new path forward for the NBL with a fairer,
stronger and more sustainable ownership structure for the benefit of all Clubs

Since then, we have continued to seek to hold NBLCO to account with respect to matters important to Clubs (such as secret Ambassador Agreements, gambling revenue, the sale of the Jack Jumpers,
integrity concerns and financial transparency. I attach the latest correspondence including a letter
received on Sunday in which NBLCO has again failed to answer reasonable questions or substantively
respond to the Clubs' concerns.

You will all now have read the KPMG Report which reveals (amongst other things) that there is a history of NBLCO calculating the Club distribution inconsistently, the significant profits made by LK Group companies from NBL related activities, discrepancies with related party transactions and opaque procurement processes which benefited LK Group entities. It also shines a light on the relatively small revenue share which the Clubs receive when compared to the total NBL associated profits of NBLCO and the broader LK Group companies.

We think that the Clubs need to act now to move towards a fair, sustainable ownership structure of the league which safeguards our investment in our Clubs and the league.

We attach a draft Term Sheet setting out an offer to Larry with the following key terms:

The 10 NBL Clubs to purchase (via an SPV) all shares in NBLCO;

Each Club will hold an equal 10% of the shares in the SPV with a seat on the SPV Board (which will
control NBLCO and the direction of the league).

Each Club (except the JackJumpers) will contribute S1M for a total $9M cash payment to Larry;

Larry will retain all the proceeds from the sale of the JackJumpers ($35 million) and will continue to
profit from the associated Wikinsons Point property acquisition and development project for the new basketball stadium and surrounds which seem to have been procured through representations made connected to The Jackjumpers and NBLCo (noting LK Group has announced that it proposes to apply the sale proceeds to fund that project)

This structure, which involves the clubs taking control of NBLCO, will ensure continuity ia the
operation of the league while the governance structures reshaped. The proposal permits Larry to
retain all proceeds from the sale of the JackJumpers. Gven that, in our view, the JackJumpers and
complimentary real estate should have been an NBLCO asset in the first place, Larry is effectively
getting S44 million for NBLCO. This means that each Club will forego it's share of the $800K
"additional" Club distribution which Larry/NBLCO said it would pay at the last meeting. in return, the
Clubs will secure greater Chub distributions and contiol over the league into the future.

Further, in recognition of Larry's significant work in developing the league to this point, we are open to providing Lary with an ongoing position (such as Honorary President) or naming a trophy or any
future in-season tournament after Larry (e.g. the Larry Kestelman Cup). We consider that this would be a gesture of good faith that would allow us and Larry to manage public perception of the transaction.

Jared Novelly
lllawarra Hawks majority owner

OCRed version of the hideous scan above:*

Cleaning up the text spat out by optical recognition made me realise that this Jared dude didn't bother going through any sort of spelling or grammar check with random words capitalised when they shouldn't be whereas in other parts the same words aren't. WTF, if you're so wealthy at least have someone else write or at least edit what you send out.

Agreed Isaac and the sarcastic KL

It is annoying timing, don't really want things to get in the way of a broadcast deal if it can be avoided.

I understand the aim of transparency and importance of LK as soon as possible not having a conflict with various clubs via ownership etc.

However, there is a benefit whilst it’s growing for the league to have someone capable of making decisions without going through a 10 team bureaucracy which no doubt would have its own politics of power clubs vs small market clubs anyway.

There are lots of things thrown out here that aren’t surprising/we know about already that doesn’t seem troubling to me during this growth period.

secret Ambassador Agreements //we know this, NBL has a willingness to chip in for players that draw marketability. I don’t have an issue with bringing in guys like Baynes, Trez, Delly etc to draw in those spectators. If the NBL needed to supplement payment to have say Patty Mills join, how many of us would complain no matter who he played for?

gambling revenue //we know this, I hate incessant gambling content but I’d imagine it’s a huge revenue stream that’s central to all Australian sports at the moment

the sale of the JackJumpers //what’s the issue here?

the significant profits made by LK Group companies from NBL related activities, discrepancies with related party transactions and opaque procurement processes which benefited LK Group entities.

//no shit? I thought that was the benefit of having someone with a diverse group of businesses including real estate, so that he can leverage those businesses to help the NBL and vice-versa. That means he’s not just sinking in money to the NBL as a charity until such time he gets sick of losing money. Everyone wants to make money here, so does LK.

"If I am not mistaken, it would be very beneficial for Larry's new teams to do very well"

When you’re so invested in the league itself, the benefit is for the entire league to do well, the JJs are small fish in comparison to the greater investment for LK.

The JJs project is remarkable - they weren’t a Real Madrid, nobody expected them to achieve what they’ve achieved so far.

" Novelly's letter to clubs comes a year after he announced his company, Crest Sport and Entertainment, had invested $40 million in the NBL’s regional basketball rival, the East Asian Super League.
Sources familiar with the relationship, granted anonymity because they were not authorised to speak publicly, said tensions between Novelly and Kestelman were exacerbated by this decision."

“ Kestelman has the support of some of the major NBL key clubs including, the Sydney Kings, the Adelaide 36ers and his own Melbourne United, two of which have publicly declared their support.
NBL insiders expect Novelly to either take control of the NBL or break it up, and create an Asia-Pacific league that includes clubs from Australia.”

AFR

When you look at the way the A League (Soccer) is structured and how it got there, there are similarities.

The previous NSL was closed down and the NBL almost closed down. There was a man with a big bank balance involved in both - Frank Lowy and LK.

The A-Leagues is operated by the Australian Professional Leagues (APL) which is owned by the clubs along with a private investor in Silver Lake. The APL Board is comprised of representatives of the clubs, Football Australia and Silver Lake along with an independent Chair. The A-League was established as the premier men's football competition in the country in 2005 following the ceasing of the National Soccer League. In 2008, the W-League (now the Liberty A-League) was established as the premier women’s football competition.

The Women’s National Basketball League (WNBL) is poised for an exciting new chapter, with the Wollemi Capital Group Syndicate (WCGS) and the National Basketball League (NBL) consortium finalising the agreement to acquire a majority interest in the League. The consortium will assume control of the WNBL on April 2, 2025, with Basketball Australia retaining a minority shareholding.

Lots of similarities there in the proposed structure by Novelly for the NBL and Wnbl and what exists for the A League Mens and Womens competition and structure.

The big difference is that the old NSL actually shut down and was disbanded while the NBL is doing well in comparison.

As a few others have said "if it ain't broke, then why fix it". Novelly claims that LK has received benefits by being the owner, well isnt that the benefit of committing a lot of money into the NBL over the last 10 years?

Ket, your previous post(not the last one, one before), fabulous. I started to copy (and paste) bits, and more and more. Then realised easier to include it all. Very well written and expresses my opinions almost to a "t".

Don't mind the idea of another league. Not as an instead-of, but as an also. Mr Novelly, there's a novel way to have an impact. Start (yes, from scratch) a new league to pitch national league championship teams against each other. Not national teams, (champion)teams from national leagues (imports and all) throughout Asia. Especially, with your already-established contacts in that market. That would serve the basketball community much more than by upending a very successful individual ownership of the league with another 10+ person ownership group, all with competing goals and ambitions and with their own way of getting things done. Remember, that's how we started this version of the NBL and what a shitfight the owners' group made out of it, they decided that one strong, smart leader was the best way to go. They were, and still are right!

Come on Mr Novelly, you're the billionaire and you can't see that for yourself? Did you make your fortune by letting everyone involved in your business operations equally share in your successes? Or even openly divulge your plans to your colleagues?

Kestleman is a smart operator who has saved the NBL.

He is a ruthless businessman who has made money along the way - kudos to him.


Tassie would not have an NBL team if it was not for him. He negotiated the state government rebuilding Mystate Arena and has secured the land from the Glenorchy Council which he is now selling off and redeveloping with a very handy profit.

The JJs after 4 years in the league by any measure are a success and he has sold them with a tidy amount from the sale being re distributed to the other clubs. Without this money and other investments from Kestleman multiple clubs would have folded and the league would not exist let alone be in the position to invest in the WNBL which should and is a priority.

Can understand the occasional calls of conflict of interest coming from some coaches at times (that tbh honest is a distraction from what is happening with their teams ....including the JJs) but I totally agree with what others as said if it ain't broke (or thriving) why change.

The Wollongong owner sounds like a spoilt brat who blames the administrator for their own failings for not making money ....happens at a local level as well.

"NBL insiders expect Novelly to either take control of the NBL or break it up, and create an Asia-Pacific league that includes clubs from Australia."

History repeating. When the NBL virtually folded in 2009 only to be saved by Basketball Australia and then sold to LK about 5-6 years later, the big powerful clubs like the Tigers' Seamus McPeake and the Wildcats' Nick Marvin wanted to continue the arms race, at the expense of the poorer clubs, so threatened to join the ASEAN league. Eventually they sobered up and reluctantly re-joined the BA administered NBL.

Agree with most in the 10 years LK has owned the league it has grown exponentially. From the cheap rosters during the BA era, understandably, to now where players can make over $1 million a season, NBL teams can compete with and even beat NBA teams, an NBA team coming to play games in Australia, the absolute sparkling success of getting a Tasmanian team up again, the JJ's being successful and generating big money when sold and if that means LK personally enriches himself with the real estate that was included in their inception, so be it.

This jumped up American guy that owns the Hawks is just jealous that LK bought the NBL on the cheap, when it was a virtual basketcase, and is now after 10 years of hard work and sinking tens of millions of dollars into it, finally starting to enjoy the spoils.

Hi, Scout. Can I shorten your, "Tassie would not have an NBL team if it was not for him" to "Tassie would not have an NBL, if it was not for him"?

Like what you did there RobT!

I dont get where this notion of all this extra money is coming from.

With the amount of money LK has put in to the NBL from buying it, to bailing out teams making losses to keep them alive, the the various things he has started i doubt he has made a $1 profit out of it all.

If he has, then good on him, he deserves it.

The conflict of interest talk whilst is true is also stupid, if LK didnt put money into various teams they would have folded or never existed, meaning the NBL might have around 4 teams left, so yes its not ideal, LK himself says this and would prefer not to do put money into teams, but its what was required to keep the NBL going.

Novellys plan sounds like exactly what LK took over from, which almost killed the NBL, and im sure the other owenrs would be smart enough to know that even if they all have a 10% stake Novelly is wanting this so that he can basically run the NBL and get his own way on things.

I personally hope they stick with LK and am very greatful for what he has done for the NBL, even if hes not perfect

I've never understood how the majority owner of a sporting league can also own a team? So the same person who pays the umpires and the "independent" commissioner, also owns a team. Not that there would be any favouritism LOL.

Spinner,

What was the alternative? it was either LK puts money in or the whole thing dies.

Also since LK took over 70% championships have been won by non LK teams Perth/Sydney/NZ.


So i think the LK rigs the NBL stuff is massively overblown.

Spinner, Larry Kestleman owns and runs the NBL because he put his money where his mouth was and took over an absolute basket case of a competition. I think that in the 46 years of NBL just about every team has been broke or inches from it. How many teams just don't exist anymore? The history of these teams is full of know all rich people who have walked away when it got too tough. If it wasn’t for Kestleman we wouldn’t have a league and don’t think for one minute that this Johnny come lately Novelly gives a flying frig about Aussie basketball. As soon as the novelty wears off for him, he’ll be gone.

The following is from a Herald Sun article this morning:

" Code Sports has been told there are no grounds for clubs to force a takeover of the NBL ownership. One source called Novelly's offer “grossly out of touch" when clubs are valued at $40 million or more. Some believe the NBL itself could be worth upwards of $500 million.

NBLCO is solely owned by Kestelman. He was granted the NBL licence in perpetuity by Basketball Australia.

Kestelman is not obliged to entertain any offers to buy him out and, even if he were to sell the league, the sale would also need approval from BA.

A source told Code Sports the relationship between Novelly and the league first began to deteriorate four years ago.

“This has been brewing for years and will likely get very ugly,” said another source.

One source called Novelly’s actions “Trump-style bully tactics”.

“What I think this is going to lead to is Jared leaving the league because he’s clearly bringing the league into disrepute. I don’t know this for a fact but I think he could have his license suspended at a minimum,” the source said.

Code Sports has been told the NBL has reminded Novelly on a number of occasions of his obligations as a club owner.

Illawarra majority owner Jared Novelly has been reminded of his obligations as a club owner.

If the Hawks owner continues his threats of launching multiple legal actions against Kestelman, Code sports has been told the NBL could take its own legal action.

Code Sports understands Kestelman will be at Sunday’s grand final decider at WIN Entertainment Centre and will hand over the Dr John Raschke Trophy to the victor, leaving the potential for an awkward presentation if the Hawks defeat United.

It would be an incredible win for a club that struggles to financially compete with the rest of the league.

The average revenue across the 10 teams is understood to be $9.2 million.

A source said the Hawks brought in $3.8 million last season and lost over $6 million, more than any other club.

Last season, the Hawks spent $2.91 million on player wages, according to ESPN.

One source said the Hawks had become serial complainers - not unlike coach Justin Tatum, who the NBL just stung with a $7500 fine after he intimated Melbourne United received preferential treatment over the Hawks.

The Hawks are preparing for the deciding Game 5 of the NBL Championship series.

“They are so disruptive, all they care about is complaining, they complain about refereeing, the commercial set up of the league, the categories of sponsors, everything,” one source said.”

Good points made by both sides of the argument by all. Just a bit of past history though, it was the LaMelo Ball and MCR a local businessman thought they would win the bid, LK made the decision to bring in Goorj mate and he brought in Goorj with the backing of Novelly. Goorj mate never turned up with the funds and Novelly made changes, Tatum took over. They have become very successful and yes critical of the league but then again Scott Roth in numerous press conferences talked about the phone calls every time he criticised the league. Novelly was the money man all along and LK made that decision. It's now two billionaires having a pissing contest. I would think that LK has got this if the clubs back him but hawks had better enjoy their time if Novelly decides to sell and runs a minimum budget funds until he does.

Don't need a brash American running it. Go away.

Novelly is delusional like his mate Trump, looks like his angle is like NRL and Superleague days. But won't be supported by the majority of clubs unless he's angling for just Hawks (that may suddenly move to Sydney), a Melbourne team, a New Zealand team and a Queensland team. Then scatter in some Asian clubs for that Asiatic Superleague. Fans from Adelaide would be too loyal to Sixers to breakaway, despite the shit show. But that could be revisited. JJ's, Kings, Perth, would be deemed loyal. Cairns I imagine would be as well, also not a huge market. Prime opportunity for a Gold Coast team to join rebel league. Don't know what new breakers ownership goals are, but have been expansion talks there in previous years when breakers were successful, so a New Franchise could come in. And depending on how the Indian NZ team goes, might get some financial backing, India poised to become the 3rd biggest economy in the world soon so moneys there.
So maybe Novelly is just starting to build some media attention and has no real desire to do what he says in his email. Maybe the plan is to create a rival league, if the Hawks do pull off the championship it would be even bigger news if afterwards, when this stupid plan dies down, that talks about this new league swirl around and that the NBL champions are looking to leave, even though they they might not be champions when they actually leave. It just seems this is the ideal time to stir this crap up when they are contending.
That's just my conspiracy theory on this out of the blue email.
I'm still of the firm opinion LK needs to at least sell United ATM. Despite all that's accused here I don't think he actively gives United an advantage, but it will always be that perceived bias that owning a team and running the league, especially in a big market, that his involvement will attract. What large, renowned sporting league is owned by individuals such as the NBL? The Saudis have been spending a lot on sports, but is one individual/family in charge of any leagues?
No-one wants it to go back to the dark days of big clubs trying to push little clubs around. But even the NBA front office would prefer a Lakers/Celtics final opposed to an OKC/Cleveland final. But does Silver has had any involvement with a team before taking over? I even doubt he'd watch a game if it wasn't his job.
The NBL is doing very well now, getting actual owners paying big money for teams, not the old John Wall/George Gervin purchasing stakes in teams to generate bullshit publicity. But it still does need to stop other shadowy deals that they try to elevate the league. It's great that players like Harrell are brought into the league, but why is his deal shrouded in secrecy? The day the league is fully transparent is the day it shows it can stand on its own feet instead of being propped up. And if course it needed to be propped up and all Australian fans should be eternally grateful it was, because for a while it looked like it was dead.The championship trophy should be called after LK, he deserves that honour. Hopefully he can step aside sooner than later as it's patron and just be an owner and fan. Then he won't have to deal with dickheads like Novelly trying to drum up publicity.
But actually wouldn't mind seeing how this rebel league goes tbh. Won't last but could be entertaining.

Is there an appetite for a break away league in Asia or is it all for easl league to be stronger. A few quality Australian team in there could be good, certainly if the players are paid substantially more. Owners are paying millions for nbl clubs now but players salary is still low compared to other leagues. LK certainly deserves loyalty though but as my partner always says, follow the money, it speaks all languages. There is also no way LK is helping united, but he pays the bills so no one would want to be on the wrong side of him.

Very unfortunately, this is a squabble over money rather than product. There may be a financial issue/problem that needs fixing, but trying to force a sale on LK as the answer, is ludicrous, and IMO, should only be seen as attention getting (Wonder where, and from whom Novelly learnt about attention getting).

Novelly's only concern seems to be around you-are-getting-more-than-me-out-of-this-pie (another thing he would have learnt from same mentor)! I say, go fight it out elsewhere. Leave us (the rest of the world) out of it. We care about the game. Lose that, and you've got nothing, no market (profit) worth fighting for, 100% of nothing ain't that good a deal.

So far, I really believe that in spite of all the advice and criticisms we all aim at LK, we also would admit that he has saved this sport's national competition and nurtured it along a successful, long-term strategy that seems to be progressing admirably. [Is that getting a bit "slushy"? I don't care, Thanks, LK].

Another conspiracy theory might be if he is losing $6 Million a year (as the Herald Sun article said) then maybe he wants out but no-one wants to buy. This might be a ploy to force Larry's hand and get him to buy the licence off him and get rid of him to boot. Surely if they win the chip though they could significantly increase revenues somehow including finding a major sponsor. How can it be they are bringing in $6 Million less than the other clubs?

Hey Phantom, NASCAR is owned and run by the France family, and they are currently fighting a legal battle with two teams over anti-competitive issues. The difference is that, although the France family has interests in some of the tracks, they don't have any interests in any of the competing teams. There are questions about which tracks get races and when they get them which raises issues around conflict of interest. I can't think of any other major sporting league though.

If Illawarra are losing $6 million per year, the owner must be approving this spending. Is he just another 'look at me, look at me' blowhard, or is he in for the long haul. Maybe the lease is up on the $15,000 a week apartment!

KL, it might be that he's realised that with a small market team, the road to profits is definitely in more league-specific things (bigger return from licenses, TV, whatever) than anchored to Wollongong (stadium, fan pool, sponsorship potential, etc). This would've been clear before investing, but maybe something has exacerbated things since.

6 million seems a lot, how much are other teams losing? Their payroll would be on par with other teams, would lose out as home attendance revenue is half of bigger teams. And how long did it take to get a sponsor on their uniforms, but that would be a drop in the bucket of 6 million.
So where is most of the 6 million going? It's not like Brian is still there, can see a few million as a small market team. They spend more on players than Cairns, but surely Cairns aren't being propped up that much each year with them not having a uber rich benefactor.

NBL teams always lose money it's just a question of how much. No one buys an NBL team to make money, they're about prestige, rich man's toys to show off to their business contacts. Just write it off tax wise and call it a day.

The Hawks always bleed money more than most, I've forgotten the number of times that club has folded and they've had more owners than I've had hot dinners. But $6 million a year? Not likely.

Smith turned the kings into a profitable organisation, I'd say Perth, Melbourne would also. If Cairns lost 6 million a year they’d be gone long ago, Illawarra had full stadiums all season, I call bull shit, it’s just to cause trouble. Most sides having large crowds would now go close to even, perhaps not NZ as they were a basket case. If the deal with Wollongong council is exorbitant, he’d better see his local member and threaten them.

Where are you all getting the $6mil loss from?

It was $6mil expenditure against $3.5mil of turnover, therefore $2.5mil loss.

Update in the AFR:

A major backer of the Illawarra Hawks has rejected claims it is trying to take the National Basketball League away from its billionaire owner but says the club has faced repeated threats to its licence over its push for greater financial transparency in the sport.

A long-running dispute over the way Australia's basketball league is governed was thrust into the spotlight last Friday when a letter from Illawarra Hawks owner Jared Novelly proposing a $9 million takeover of the NBL by its clubs was made public.

Former newspaper executive Terry Egger, vice-chairman of Novelly’s private firm Crest Sport and Entertainment, which owns the Hawks, said the bid was about finding a way to create a better business model. It was sent after the seven NBL clubs with no financial links to league owner Larry Kestelman unanimously voted in January to advocate for change.

"All we really want is that transparency," Egger told AFR Weekend. “In many of the codes in other countries or other states, particularly the US, each team has some say in the governance, so that you all have a little bit of control over your future.”

Australia’s NBL has had a long history of financial problems - the competition has lost more than 20 teams since it was formed in the late 1970s. Since 2015, it has been privately owned and run by Dodo co-founder Kestelman, who has injected more than $70 million into the competition and has held equity in several teams in that time, including Melbourne United and the Tasmanian JackJumpers. He has announced plans to sell his equity in both clubs.

The league currently has 10 competing clubs owned by a range of rich businessmen, former basketball players, and fans. These include US National Basketball Association stars Luc Longley and Andrew Bogut, Telsa chairwoman Robyn Denholm and even tennis star Nick Kyrgios, who has a small stake in the South East Melbourne Phoenix.

The Brisbane Bullets are co-owned by the US investors behind Major League Soccer team DC United.

Novelly, who will soon become the US ambassador for New Zealand and Samoa, bought the Hawks in 2020 and almost immediately began advocating for changes to the way the league was run.

He is the son of former Apex Oil owner Paul Novelly, who died last month, and will not be able to run the club when he is formally appointed a US ambassador by US President Donald Trump.

Some of the changes sought included an attempt to put together a team charter and a proposal for the creation of an independent representative for club owners, according to people familiar with Novelly’s thinking who requested anonymity due to the sensitivity of the situation.

Egger, who ran media organisations in the US for three decades, said the takeover proposal emerged from concerns about the disclosure of financial reports, the distribution of money to clubs, how much each team pays for a licence, and the money provided to related parties of the NBL owned by Kestelman.

“The threat of taking our licence away is there constantly,” he said. “I have never seen a structure where an individual owns the league but also owns teams within the league and also then controls the governance of the league and the officiating.”

Kestelman’s arrival marked the first time clubs received any sort of distribution from the league. Under the licence agreements, 24.5 per cent of the league’s profit is distributed between its teams. That figure was $1.5 million in the 2024 financial year as the NBL recorded a $6.1 million profit, according to the KPMG report.

Egger says that even with this distribution most teams lose money because of the amount required to pay for players, venues, and coaches.

“We give credit to Larry for the risk he took early. We think the product overall is good,” Egger added. “But the fundamental issues of governance, structure, financial disclosures, revenue, share equality, are things that have to change for this to be sustainable.

“The most frustrating thing is the lack of transparency.”

An NBL spokesman said: “Any suggestion that the NBL has made threats to Crest Sports to remove its licence is simply untrue.”

At the heart of the NBL dispute is a report put together by KPMG, which was initially asked for by Novelly and then funded by several clubs. The scope of the inquiry was determined by the NBL.

The report was not an audit or a forensic review of accounts and did not find any significant issues related to the eight topics investigated in the inquiry.

It found some variances and inconsistencies in how the NBL distributed profits and put forward a series of recommendations related to improving internal processes and transparency around payments and related party transactions. The NBL is privately working on ways to improve its internal processes.

Novelly’s letter to clubs came a year after he announced Crest had invested $40 million in the NBL’s regional basketball rival, the East Asian Super League.

NBL insiders previously told AFR Weekend Novelly wanted to either take control of the NBL or break it up and bring clubs from Australia into the Asia-Pacific league.

“We’re not that smart, and it wouldn’t happen,” Egger said on the latter point. “Jared has zero interest in a hostile takeover or running a league. This is about how we get to a point where each of the teams has an equal voice.”

Novelly is preparing to file a case against the NBL in court, claiming it has not been transparent in its dealings with clubs. He will also make claims to Basketball Australia and FIBA, the international basketball governing body.

The NBL has meanwhile sent a grievance letter to the Illawarra Hawks, marking the beginning of a formal process that could end with its licence being stripped.

The independent clubs, who were on a joint call with KPMG on Thursday, did not discuss Novelly’s proposal. There are no firm plans about what the structure might look like or who else may invest in the league if that proposal falls apart.

Kestelman told AFR Weekend: “We have spoken to every club. He has zero support for his proposal.”

https://www.afr.com/companies/sport/how-the-billionaire-fight-of-the-nbl-unravelled-20250327-p5ln3k

We know that Adelaide was not one of the 7 and so we now have it independently confirmed that LK is tipping money into Adelaide

"The independent clubs, who were on a joint call with KPMG on Thursday, did not discuss Novelly's proposal."

Was MU one of "the independent clubs"? Are there any "independent clubs"?

Sounds a lot better than the original email with the way Egger has put it. And while they shouldn't bite the hand that feeds it, sounds like the seven clubs do want change. And if course they wouldn't say anything to LK if he rings them up and demands to know what they want. They'll just say yes Larry and do whatever is best for them behind his back. Especially if he's threatening the Hawks licence.
Best news in it like Q Anon says is that LK has his finger in the Sixers pie, so would be looking to sell if the price is right. Just wish he would openly pay GK out and put the for sale sign up. I wonder what say he does have in the way the teams been run, it's like he's lent his luxury car to someone and they've run it into the ground, plenty of scratches and dents and the engine is packing up. Sixers keep trying to buff out the scratches and fiddle with the motor every year like a dodgy second hand dealer, but as a business man you'd think LK would like to get it back, respray it and put a new engine in before reselling it. And not with a mechanic doing the job as the first time in charge, or 2 local parts that are always backfiring or needing to be coaxed if things aren't going well.
And the "independent clubs" will all be talking behind the scenes hatching a plan, would be dumb to openly mutiny.
Best scenario is LK actually listens and has open and transparent dialogue with everyone instead of keeping his plans to himself.

Hahaha

Not ever lending you my car, Never!

So the complaint has happened.

Do we think this is going to have broadcasters thinking twice and potentially screwing up a good deal?

If this issue was seen as a "get rid of Larry K thing", it deserves to be laughed off.

Seen from the "conflict of interests" side of the issue, there is some truth in it.

Would it solve all the issues if LK can be persuaded to sell his pet, Melbourne United, but let him have FULL control of the NBL (company/league/financials, the lot). That way, he decides what's best for the NBL, and goes ahead and does what he does, which he has proven he is very good at.

The owners can still be involved in the behind-the-scenes, business side of things up to and including having an advisory board made up of all the owners. Not (necessarily) binding, but it would at least be a more peaceful way of settling things. No-one can blame anyone for getting unfair advantages.

National Basketball League Pty Ltd (owned by LK) would receive all NBL income and divvy it up to the clubs in whatever way it sees fit (and be justified?).

Clubs that needed financial support/backing for start-up (Tas) or survival (plenty to choose from) etc, could receive the same "help" but as a loan, for future repayment, at no interest. The club could then raise the funds required to pay its debt (unpaid part of the purchase price) and acquire "clear title", or sell off enough part-ownership to pay up. All parties could be involved in the sale, as in the NBL and/or the (indiv)club.

Disclaimer: I am no expert on business matters and not even that smart anyway. If the above has/had any merit, everyone else has already considered and dismiseed it or are laughing their arses off right now, at my suggetions.

I get the feel it's more of a mega-rich guy not getting his way and spitting the dummy.

Exactly and has similar wealth to LK too so probably eats away at his ego that he only owns one team but LK owns the whole league. Plus he's heavily involved in the EASL so probably wants to convince a few NBL teams to defect to that league.

I'm getting a little bit sick of all the pro-LK fluff pieces the NBL keep pumping out but obviously he's worried about teams either voting with this guy or possibly defecting.

We all seem to be of one mind, on here, on this subject, obviously supporting LK. But, have there been any reports of support for Novolley, from anyone (who matters) in the NBL (eg other owners)?

I think everyone agrees he should be selling out of United completely - I always thought that was the plan though?

Judging by the slow sale of Tasmania - it's about getting the right buyer not any. That’s fair enough.

It’s one thing to complain about his fingers being in many pies, but it has been born out of creating expansion and AFL-esque socialism to create a close competition.

Given that, United would probably be as or more successful if LK wasn’t running the NBL, let’s be honest here.

The one club I’d love to see given more assistance is Cairns.

Would the owners complain if that happened? Probably!