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.