Basketball Australia has been asked by the sport’s world governing body to investigate claims of conflicts of interest made about National Basketball League supremo Larry Kestelman by the American owner of competition champions the Illawarra Hawks.
The civil war that has engulfed the Australian game is already headed for the NSW Supreme Court, with the Hawks’ pursuit of a trove of financial documents from the NBL and other Kestelman companies associated with the league to be heard for the first time next week.
NBL owner Larry Kestelman says the league has never been in better shape.Credit: Getty
As other team owners weigh up joining the legal action, BA will launch its own probe at the request of the sport’s international federation.
The Hawks’ owner, Crest Sport and Entertainment, headed by US billionaire Jared Novelly, last month aired concerns with FIBA about suspected violations of its code of conduct by Kestelman.
There was further agitation last week when teams were told of plans, since aborted, for the NBL to use a travel agency part-owned by Kestelman and founded by a referee in the league.
In an email to other team owners on Wednesday, Crest said it would call for BA to appoint an independent investigator to assess allegations raised about the entrepreneur and property developer’s running of the 10-team league.
Hawks owner Jared Novelly has urged others to join legal action against the NBL.Credit: Dylan Coker/Australian Financial Review
“While we cannot speak to internal BA investigations, the sanctions against basketball parties are made public on the FIBA website and they record numerous instances of lengthy, and even lifetime bans from basketball,” an email by Crest vice-chairman Terry Egger said.
“Given the numerous conflicts of interest, and other issues going to the integrity of basketball that we are already aware of, including most recently NBLCo apparently engaging a travel company that is jointly owned by Mr Kestelman and an NBL referee, we consider it to be very likely that BA will act quickly to restore confidence, potentially including by preventing those individuals involved in the impugned conduct from being involved with the NBL.”
Kestelman has had stakes in several teams through his private company or the NBL itself and has also owned the league for the past decade.
He has also taken charge of the Women’s National Basketball League in partnership with Tesla chair Robyn Denholm, the majority owner of the Sydney Kings.
Novelly, the son of an oil tycoon and the incoming US ambassador to New Zealand and Samoa, has taken Kestelman and the NBL to task over the competition’s ownership model, financial transparency and governance, and his company has called on other team owners to share any concerns they have with BA.
Most have remained under the radar to date, but the discovery of Kestelman’s business link with NBL referee Jack Taylor last week caused further irritation.
“Is it ok to invest/buy-in to an active referees business whilst owning shares in a club/clubs in the same league the referee acts in?” Kings co-owner and NBA championship winner Andrew Bogut posted on X. “Asking for a friend.”
Perth Wildcats owner Mark Arena said on the social media platform he was disgusted by the travel company deal when told about it on a video call. “I never even came off mute although was on video and my feelings were pretty well shown,” he said.
Crest has also demanded clarity about the money that flows to the NBL from betting.
“We note that there are several potential conflicts of interest concerning BA and NBLCo that are cause for concern, including the integrity deed between NBLCo and BA regarding shared gambling revenue and the entwined relationship between Mr Kestelman (or his interests) and BA in relation to the WNBL,” Crest’s email to fellow owners said.
In a letter to Crest’s lawyers in Switzerland, BA chairman John Carey said the Hawks’ complaint had been referred to the Australian governing body by FIBA, which considered it the appropriate entity to examine its contents.
“BA agrees with FIBA’s position, that these matters ought to be considered in the first instance under BA’s authority within the framework of Australian law and the applicable rules, regulations and policies,” Carey wrote.
An NBL spokesman said league officials could not comment immediately as they had not received correspondence from BA.
Kestelman has previously rejected the allegations, saying the NBL had never been healthier, with team values soaring above $30 million.
BA has asked the Hawks to reframe its complaint in line with its national integrity framework rather than the FIBA regulations.
“We know Basketball Australia is focused on ensuring the success and integrity of the game in Australia and we respect the role they play,” Egger said.
“In consultation with team owners, we intend to engage with Basketball Australia to understand how it will ensure any investigation is conducted in a thorough, independent and transparent manner.”
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