NBL owner Larry Kestelman has faced a bombshell revelation as Jared Novelly, owner of the Illawarra Hawks, deploys a hostile takeover of Australia's National Basketball League (NBL). With the NBL Championship Series reaching its climax, Novelly's aggressive strategy to oust Kestelman has certainly stirred the pot in the realm of Australian basketball.
On Thursday evening, March 20, 2025, Novelly sent an email to fellow team owners detailing his plan to take action against NBLCo. In this email, he stated his intention to file "multiple actions" before the end of the month. In an attempt to enact change, Novelly proposed that Kestelman sell all his shares equally among the ten teams in the league.
"I am taking one last shot to try to allow the current ownership to leave peacefully while saving face and reputation," Novelly wrote, suggesting the owners collaborate on a structure that provides equal representation. His frustration with Kestelman's management has crystallized into specific grievances that he believes warrant a drastic overhaul of league governance.
CEO of NBL since 2015, Kestelman responded firmly on March 21, stating, "We remain fully committed to the continued and unprecedented growth and success of the NBL. The NBL is not for sale." His assurance comes as no surprise; he has been instrumental in transforming the league, driving it to unprecedented heights. Yet, Novelly's actions signal a deeper rift, rooted in financial discrepancies and governance concerns.
Novelly raised serious allegations against Kestelman, citing a KPMG report that questions financial transparency concerning several issues—the clashing titles of "secret ambassador agreements," gambling revenue, and the sale of the JackJumpers. Allegations suggest that NBLCo has mishandled club distributions and that LK Group companies have stood to gain significantly from NBL activities.
In response to Novelly's propositions, Kestelman has reiterated his commitment to transparency and growth, deflecting Novelly’s concerns. As the stakes rise, two billionaires find themselves embroiled in a power struggle that could potentially reshape the future of the league.
This confrontation isn't happening in a vacuum; it coincides with the ongoing 2025 NBL Championship Series, with Game 5 approaching on March 23, 2025, in Wollongong. Both the Hawks and their adversary, Melbourne United, are making headlines not only for their gameplay but also for the unfolding takeover narrative that is threatening to overshadow the competition itself.
Under the draft term sheet that Novelly shared with fellow team owners, he proposed that nine teams contribute $1 million each to form a buyer pool totaling $9 million, before splitting ownership of NBLCo. Kestelman would also retain proceeds from the recent sale of the Tasmania JackJumpers. This seemingly amicable offer might come off as a facade when examined closely in the light of Novelly’s turbulent past.
The ramifications of this takeover attempt could affect more than just Kestelman’s tenure; the potential restructuring could alter the league’s operations, placing greater authority in the hands of team owners and less in that of a singular owner. The deal would create a new entity called LeaguesCo, allowing each club equal say in its governance.
Novelly has not shied away from expressing his admiration for Kestelman’s contributions to the league. He suggested provisions to honor Kestelman, such as an honorary title, which he creatively proposed, like naming a future trophy after him. It’s a strategic move—not only to soften the blow of his ousting but also to manage public perception.
Moreover, the current context of NBL expansion discussions adds another layer to this scenario; as franchises now hold values exceeding $35 million, the potential for expansion could further complicate negotiations. Changes in governance structure could ignite debates about the league’s direction in the coming years.
In the weeks leading to the championship game, basketball fans find themselves caught not only up in the game’s excitement but also in this extraordinary conflict. The atmosphere is charged, with uncertainty hovering over the league’s leadership amidst growing tensions.
This storyline of rivalry within the NBL illustrates how pivotal leadership dynamics can affect sports leagues, bringing intrigue and unpredictability into the mix as major stakeholders vie for control. With the game’s future at stake, all eyes will be on how this power struggle unfolds in the days to come.
The question remains: can Novelly’s ambitions shift the direction of this historic league? As both parties advance toward their anticipated confrontations, the stakes couldn't be higher for basketball in Australia.
