A disgruntled group of NBL franchise owners has boldly called for the league to release a secret Basketball Australia report into the league’s governance and its majority owner Larry Kestelman.
The call came as it emerged the South East Melbourne Phoenix, led by US-based majority owner Romie Chaudhari, Perth Wildcats, led by multi-millionaire Mark Arena, and Illawarra Hawks – led by Jared Novelly, a US-based billionaire, Crest Sports and Entertainment chief, and now Donald Trump’s US ambassador to New Zealand – had established an independent owners’ association.
The owners say it’s time for the NBL to waive confidentiality and publicly table the report by former solicitor-general Justin Gleeson, SC, which the league says cleared wealthy businessman Kestelman of any wrongdoing.
A spokesman for the Professional Basketball Club Owners Association said its members wanted a formal voice and vote for club owners in league governance, and full transparency of the recent governance review.
“We see this as a constructive and collaborative initiative that will strengthen the sport by bringing together owners, the NBL, Basketball Australia, the players’ association and other stakeholders in pursuit of shared goals,” the spokesman said.
“As a first step, the association is calling on Basketball Australia to release the Gleeson report in full. The association believes full transparency is in the best interests of the game in Australia.
“Its clubs, owners, players, coaches, communities and fans all have a stake in the findings that will shape the sport’s governance and future, and releasing the report is the clearest way to build the trust and confidence the game needs to move forward together.”
BA has previously said the report cannot be released because of confidentiality, but referred current questions from this masthead to a third-party public relations company.
A source with knowledge of the issue said the Australian Sports Commission, which funds BA, had been briefed on the report, but was not supplied a copy of it.
A spokesman for Sports Minister Anika Wells said her department had not been given the report. Sport Integrity Australia did not wish to comment.
The NBL was contacted for comment.
The remaining seven NBL clubs in the league have also been approached about joining the association.
As reported by this masthead, the Phoenix, Wildcats and Hawks are in a bitter dispute with Kestelman about the league’s governance and financial disclosures, including the licence agreement of the Tasmania JackJumpers.
This fight includes an ongoing case in the NSW Supreme Court, separate mediation over $1.5 million of travel and flight costs, and an appeal to the sport’s governing body, FIBA. The NBL, in response, has sought action through the Court of Arbitration for Sport.
The NBL has disputed the clubs’ overall claims, and points to the BA report which the league insists cleared Kestelman and the league of any wrongdoing. BA completed a seven-month independent investigation through its integrity unit, dismissing Novelly’s formal complaint.
However, the league did not release the full report, which remains a source of frustration for the three clubs.
Arena told this masthead he hoped the association would prompt change.
“I look forward to the club owners association facilitating better relationships between club owners and other parties,” Arena said.
Chaudhari said club owners did not want further expansion, with the league considering an 11th franchise either on the Gold Coast or in Canberra.
“The vast majority of, it not all, of current owners are not in favour of expansion at this time and have made that point clear to the NBL in multiple forums,” Chaudhari, a wealthy real estate entrepreneur and investor who is also an owner of US soccer club DC United, told this masthead.
A spokesman for the owners’ association said: “Professional basketball in Australia has evolved into a significant and increasingly sophisticated sporting ecosystem, supported by club owners who collectively invest tens of millions of dollars each year in players, coaches, staff, facilities and community programs.
“Owners play a central role in building and sustaining the clubs that fans connect with, yet, until now, have had no formal mechanism to contribute to discussions about the future direction of the sport.
“The formation of this association is about ensuring those responsible for much of the long-term investment in basketball have an appropriate voice at the table.”
Kestelman became the NBL majority owner in 2015 and rebuilt a league which was teetering on the brink. Blue-chip franchise Melbourne United recently had a $50 million valuation.
Nine, the owner of this masthead, will be the league’s free-to-air broadcaster in season 2026-27.
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Jon Pierik is a sports journalist at The Age. He covers AFL and has won awards for his cricket and basketball writing.Connect via X or email.
