curtley
Last month

Hawks and Phoenix v the NBL

From Sydney morning herald yesterday:

A second team will join in Supreme Court action seeking a cache of documents from the NBL and its billionaire powerbroker, Larry Kestelman, as officials warn that a mounting feud with owners risks bringing down the league.

The case is being fronted by the Illawarra Hawks and its US owner, Jared Novelly, who have been embroiled in a dispute with the league over its ownership structure and financial transparency.

The league's other teams have mostly kept their powder dry despite growing discontent, but according to sources with knowledge of the situation, speaking on the condition of anonymity, South East Melbourne Phoenix intends to join as a plaintiff when the discovery motion is heard in Sydney on Friday.

The club, whose ownership group is headed by US entrepreneur Romie Chaudhari and includes former Wimbledon finalist Nick Kyrgios and NBA player Dante Exum, is set to sign on despite teams being told they could be in breach of their licence agreements by taking on the league.

"We have become aware that Mr Novelly’s Crest is rallying a coalition of clubs and owners to support his campaign against the NBL and its leadership," NBL chief executive David Stevenson said in an email to team owners.

“There is no doubt that this campaign is bringing the NBL, the league and the game of basketball into disrepute.”

Stevenson said he wanted to ensure teams were not “unwittingly induced to breach their own licence agreements for the purpose of legitimising the conduct of others”.

The Hawks are pursuing access to a trove of material from the NBL and Kestelman-owned companies linked to the competition, raising concerns about alleged conflicts of interest and the integrity of the league.

The club advised other team owners that, by law, they would need to join the discovery action to view any information secured via the court.

While warning them against that on Tuesday, the NBL suggested the current crisis posed an existential threat to the league.

Illawarra and Mr Novelly have been on notice of the destabilising impact of their actions for over six months,” Stevenson said in his email to teams.

“The disregard for due process and breaches of legal obligations (including by improperly commencing court action rather than following the mandatory grievance process prescribed for all clubs and the NBL), have had a material impact on the NBL, its commercial opportunities and therefore all clubs.

“The matters playing out in the public arena are reminiscent of the conduct that almost resulted in the demise of the league before the league’s current ownership was asked to step in.”

Stevenson’s letter brought a sharp response from Perth Wildcats owner Mark Arena. He asked the CEO to confirm whether clubs that joined the court action would be viewed as bringing the league into disrepute and to assure teams they would not face retaliation if they shared concerns with Basketball Australia.

In my view, if the NBL and basketball has been brought into disrepute, that is by the NBL’s own actions,” Arena replied, pointing to previous media reports that Novelly could be stripped of his licence.

Chaudhari, who co-owns a US Major League Pickleball team with Kyrgios and NFL superstar Patrick Mahomes, added in a further email to the NBL and team owners: “Amen ... great points, Marc (sic), thanks for sharing!”

As well as Kyrgios and Dallas Mavericks guard Exum, the other co-owners of the Phoenix include five-time NBA All-Star John Wall and former NBA players Zach Randolph, Josh Childress and Al Harrington.

The NBL has called an urgent meeting of team owners and Kestelman on Thursday.

He has refused to budge so far as he has come under fire from Novelly’s company, Crest Sport and Entertainment, through which the incoming US ambassador to New Zealand and Samoa owns the Hawks.

Stevenson said a complaint made to basketball’s international federation made “unsubstantiated and baseless allegations of violations of FIBA’s code of conduct”.

FIBA has referred the matter to BA, which has asked the Hawks to reframe its complaint in line with its national integrity framework.

“The FIBA letter also sought to prevent Mr Kestelman’s involvement in the WNBL in circumstances where Crest unsuccessfully attempted to acquire the WNBL from Basketball Australia in 2024,” Stevenson told team owners.

“Ironically, Mr Kestelman has been accused of a conflict for holding interests in NBL clubs and the league (a fact publicly known prior to Mr Novelly’s investment into Illawarra) despite Crest previously holding an interest in the Bay Area Dragons and a significant interest in the East Asia Super League at the same time.

“Ultimately, clubs and owners should satisfy themselves that they are not prejudicing their own rights to pursue the personal gain of others.”

Topic #52794 | Report this topic


Dunkman  
Last month

Oh boy, nbl always seems to end in a pickle, might be back to eight team competition

Reply #964922 | Report this post


KET  
Last month

I feel like this will screw with broadcast negotiations and sponsors

Bloody hell, way for things to start imploding. This sounds to me like a bunch of rich egos caring more about their egos than us basketball lovers

Reply #964923 | Report this post


Dunkman  
Last month

Exactly, it's a pissing contest by billionaire men. JJs came about because LK saw the deal after huskies got it rolling, that was the first skirmish but now there is some real big money players all want to make money.

Reply #964927 | Report this post


Frog39  
Last month

Not good news. Chaudhari and Novelly both dodgy. Novelly right in Trump's circle, which says it all. He's a nepo baby, major Republican political donor and the son of a St Louis oil baron....kinda shows where his priorities lie and it isn't in the best interest of basketball.

Reply #964937 | Report this post


ME (he/kangaroo)  
Last month

I am not sure what theyre hoping to achieve here. If you dont like the way the league is run, sell the team and move on. Dont destroy the league to prove you're somehow the 'bigger man'. I have no doubt LK has had to stretch things a bit to make the league a success, have shares in teams, all of that. WHO CARES? The league is flying and not everything in the world is going to be equal all the time.

Reply #965000 | Report this post


KET  
Last month

Stretches out to July.

Probably screws with broadcast contract.

Looks like chemist warehouse no longer an NBL sponsor?

Reply #965002 | Report this post


RobT  
Last month

"Looks like chemist warehouse no longer an NBL sponsor?"

Is that because it's part of Novelly's business interests or just by-the-way news?

Reply #965004 | Report this post


Zodiac  
Last month

Even though no broadcast deal has been announced I did read down the bottom of one of the NBL website articles last week that NBL26 will be on ESPN.

Reply #965005 | Report this post


Zodiac  
Last month

Here it is:

"Fans have the chance to win great prizes simply by tuning into ESPN's live game coverage throughout NBL26."

https://nbl.com.au/news/founding-jackjumpers-members-score-asx

Reply #965006 | Report this post


KET  
Last month

By the by news

Reply #965009 | Report this post


Scout  
Last month

I'm firmly in the Kestleman camp.

Yep he has made some dollars along the way but for fk sake if he was not here the league would hav efolded.

The Hawks owner seems only in it for him.


Yep bring some scrutiny but have some perspective.

Basketball in this country has benefited from Kestelemans involvemet

Reply #965048 | Report this post


hoopie  
Last month

IF he has made money (& it's a big IF), he will only have made it recently, from everything I’ve read. LK seems to have poured in millions to get it to its current health, purely for the love of the game.

I doubt if Novelly would have made such a sacrifice.

Reply #965049 | Report this post


The Phantom  
Last month

Has LK made any money? His recent sales may have gotten him some return on investment but reckon he's lost a lot over the journey.
He saved the league altruistically, but ultimately is a successful businessman. The yearly talks about expansion would allow him to recoup some money, just needs to make sure the league and current teams are viable before bringing in teams that may be located in historically unfinancial locations, eg gold coast, Canberra etc. That being said, Tassie has been an amazing success, even Jackjumpers has caught on despite a lot of initial bad reactions, mine included. However, didn't half the teams lose money again?
Everyone should be forever grateful for LK, only thing I would say is ultimately there needs to be transparency and league headquarters to be run independently without one person "owning" the league. That would mean the league is in good shape and not need bailouts by individuals, and close the arguments of bias, whether real or perceived once and for all.

Reply #965050 | Report this post


Scout  
Last month

Great post Phantom.



Very well-articulated.


Respect



Reply #965052 | Report this post


Dotman  
Last month

Phantom my my man main although some really big words that guess make sense you written pretty decent summary of the valued contributions by men such as LK and owners who dig down into pockets and do the heavy lifting. Oi big on building culture and being positive to bring forward a culture that breeds success. All the way with LK.needs to keep growth and evolving and tapping into ideas from all places..

Reply #965059 | Report this post


word14  
Last month

Nicely said Phantom

Reply #965062 | Report this post


Point3  
Last month

"There is no doubt that this campaign is bringing the NBL, the league and the game of basketball into disrepute." This is not a campaign, it's simply an attempt to hold a monopoly to account. Good on JL for taking on the league, and LK and the way everything is pretty much a conflict of interest. LK and his mob are the ones bringing the league into disrepute - eg. having a current referee in business negotiations with LK around the ownership of the referee's travel company, all the while the ref is officiating on a game where LK owns the club, THEN awarding the contract for travel to the newly acquired travel company? Conflict of Interest....look it up.

Reply #965066 | Report this post


HooperM  
Last month

100% agree with Point3, the league really smells at the moment. So many conflicts of interest and no one (apart from Jared Novelly) is prepared to say anything. Just because someone threw some money at the NBL years ago doesn't give them the right to play with as they see fit. Glad other clubs are finally waking up and doing something about it.

Reply #965067 | Report this post


Perthworld  
Last month

Last two posts were made by brand new users.

Reply #965070 | Report this post


Point3  
Last month

So what Perthworld....you were a new member once? I'm assuming this forum is brave enough to have alternative views. Not all of us are LK supporters.

Reply #965075 | Report this post


Dunkman  
Last month

The problem with all this is there is two sides to all stories, I want the nbl to be very successful and LK has certainly put it in a great perspective but sometimes transparency is required. I'm hopeful that these billionaires can sort their differences out and we all move on, otherwise it’ll be a who can piss further amongst billionaires and the nbl will suffer.

Reply #965079 | Report this post


Zodiac  
Last month

Isn't this Novelly guy the owner LK chose to buy the Hawks over LaMelo Ball?

Reply #965080 | Report this post


KL  
Last month

Thankfully all of this will be decided objectively at law by the Supreme Court (or ultimate appellant Court) and not by a Court of Public opinion in a vacuum of facts and evidence based on personal paradigms.

If there is any merit at law in Novelly commencing these proceedings then fair enough but if not then it will be clear for all what this has been all about.

Reply #965082 | Report this post


Perthworld  
Last month

So what Perthworld....you were a new member once? I'm assuming this forum is brave enough to have alternative views. Not all of us are LK supporters.

Yes, yes and yes.

However two new signups posting the same thing, within 17 minutes of one another, had my spidey sense tingling.

Reply #965083 | Report this post


RobT  
Last month

Prthworld, I get your implication and agree with your point of view. When 2 new posters suddenly appear, one immediately after the other in a very controversial forum discussion, both posts taking one side of the argument, and strongly condemning the other side's motives smacks of a set-up.

The author of Point3 wrote; "There is no doubt that this campaign is bringing the NBL, the league and the game of basketball into disrepute.", is an apt description of "this campaign", but this campaign is Novelly's doing not LK's, who is apparently the target of your accusation. Get your boy's name right, too. It's JN or has his name changed to "Jared Lovelly".

And this from his mate, HooperM, "Just because someone threw some money at the NBL years ago doesn't give them the right to play with (it) as they see fit."

Do you remember that the NBL was very near to total collapse before LK "threw some money at the NBL and" saved it from utter oblivian?

I am going to be kind and presume that you're both new to the NBL, as well as this forum so maybe you don't remember.

You finished with, "Not all of us are LK supporters."

I finish with, "All of us don't need to be, but all of us are supporters of basketball and the NBL and should want to see more of LK."

Reply #965084 | Report this post


Dunkman  
Last month

Yes Zodiac, Novelly is LK chosen one over Ball and the local businessman from MCR.

Reply #965088 | Report this post


Point3  
Last month

Ah RobT, thanks for your feedback and scintillating grammatical overview. Please provide us poor folk in the crowd with your evidence of the League going into 'utter oblivion' in 2015 as you put it (and please don’t quote Larry’s Wikipedia page). Let’s start with the books or bottom line at the point when LK chipped in - oblivion, I think you’ll find is far from where we were. I too have been around for a very, very long time - the good times and the not so good times. Time for a change.

Reply #965090 | Report this post


The Phantom  
Last month

Oh shut up Herman, as usual your drivel brings nothing to the table.

Reply #965091 | Report this post


KL  
Last month

Surely Jacket would have a view on this.

Reply #965094 | Report this post


Dunkman  
Last week

Arena now supposedly now joining these two clubs. It's amazing how this pissing contest is probably going to drag down the nbl again. These are owners who were picked by LK, to slightly change a Keating analogy, don’t get between a billionaire and a bucket of money.

Reply #966250 | Report this post


Cram  
Last week

Weren't they "picked" because they had money?

Particularly in the SEM case, the league said they didnt even want another Melbourne team but thats where the guy wanted it so they went with it.

Its always been a case of integrity and due process until someone has the right price tag.

Reply #966252 | Report this post




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