Basketball Australia asked to investigate claims in owners’ spat

Basketball’s international governing body, FIBA, has passed an investigation concerning billionaire NBL owner Larry Kestelman’s alleged conflict of interest to Basketball Australia, indicating that the matter falls outside its jurisdiction.

Crest Sport and Entertainment (Crest SE), the ownership group of the reigning champions, the Illawarra Hawks, has reached out to competing clubs, urging them to report any potential prohibited conduct to Basketball Australia for further investigation.

Vice chairman of Crest SE, Terry Egger, said that the group has “taken the brunt” of Kestelman’s retaliation and that of the privately owned National Basketball League (NBL) regarding these allegations, thus encouraging rival clubs to come forward with their experiences.

Egger emphasised that Crest is prepared to provide documentation to assist Basketball Australia’s probe, in correspondence sent to the NBL clubs on Wednesday.

Egger further asserted that Crest and the Hawks had already endured significant retaliation, suggesting that any other owners who share Crest’s concerns would not face the same challenges by participating in the process now.

Since 2015, the league has been under the private ownership of Kestelman, a co-founder of the telecommunications company Dodo, and he is also a part-owner of the Women’s National Basketball League (WNBL).

Kestelman has faced increased scrutiny following the Illawarra Hawks’ ownership filing a claim with the Supreme Court, raising concerns about the operational management of the league.

Crest Sport, owned by Jared Novelly, is seeking access to documentation reflecting the NBL’s financial health and alleges that the league has consistently breached its licensing agreement by failing to disclose third-party transactions involving Kestelman’s companies.

Kestelman has also requested an investigation from FIBA, with Egger noting that FIBA has instructed Basketball Australia to investigate and address the allegations raised.

Egger expressed his belief in Basketball Australia’s ability to conduct a proper investigation into Kestelman’s conflicts of interest, citing his interests in the WNBL and related agreements.

Egger, noted: “We know Basketball Australia is focused on ensuring the success and integrity of the game in Australia,”

“We intend to engage with Basketball Australia to understand how it will ensure that any investigation is realised in a thorough, transparent, and independent manner,” he said

In response to the ongoing concerns, Kestelman has consistently denied any lack of transparency and has enlisted KordaMentha to review documentation related to the Hawks amidst accusations of licence breaches.

Tensions intensified last week when the NBL reversed its decision to appoint a new company for running travel arrangements after it was disclosed that Kestelman holds part-ownership in the agency.

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