The Illawarra Hawks have expressed dissatisfaction following an investigation by Basketball Australia (BA) that exonerated NBL owner Larry Kestelman of any misconduct allegations.
Hawks owner Jared Novelly had lodged a formal complaint with BA concerning the allocation of league revenue among the ten NBL teams. However, the investigation concluded that there was no “credible” evidence to suggest Kestelman violated the NBL’s code of conduct.
Novelly, who is also the majority owner of the Hawks and has been nominated as Donald Trump’s ambassador to New Zealand, has accused Kestelman of damaging the integrity of the sport. This complaint was reviewed by barrister Justin Gleeson, who was hired by BA last year to investigate the matter.
The ongoing conflict between Novelly and Kestelman has persisted for over a year, with Novelly alleging conflicts of interest related to Kestelman’s management of the league and the fairness of revenue distribution. In a recent update, BA disclosed that Gleeson consulted with all ten clubs and found no evidence indicating that any club was adversely affected by Kestelman’s leadership.
Last year, the New South Wales Supreme Court dismissed Novelly’s attempt to obtain NBL financial documents, although an appeal is currently in progress. Novelly remains determined to pursue the issue and has not backed down from addressing the BA investigation.
Crest Sports and Entertainment, the Hawks’ parent company, issued a pointed statement questioning the lack of transparency surrounding Gleeson’s report and called for intervention from FIBA, the global governing body for basketball. Previously, Novelly and Crest had submitted their concerns to FIBA, which subsequently referred the matter to BA.
A Crest representative stated, “This attempted cover-up is paper-thin. Until the report is made public, how can anyone trust the process or the conclusions? Keeping it hidden displays a disregard for players, owners, fans, and everyone associated with the sport. The evident self-dealing and conflicts of interest are clear to anyone who follows basketball, which is why we initially approached FIBA and anticipate they will need to investigate this further.”
Since Kestelman acquired the NBL in 2015, the league has formed partnerships with brands like Reebok and Foot Locker, in which Kestelman had a financial interest, and granted merchandising rights to a clothing line established by his son. He also previously held shares in three of the NBL’s ten teams, although he has since divested those holdings.
Additionally, the NBL moved its Melbourne offices last year to a property owned by Kestelman’s real estate group. In response to the investigation’s findings, Kestelman remarked that he views the conclusions as a vindication and looks forward to moving past the incident. He has played a crucial role in revitalizing the league, which attracted a record 1.2 million fans during the 2025/26 season.
“I’m relieved that this matter is now behind us, and my reputation has been restored,” he stated. “I have dedicated 15 years to nurturing and expanding the NBL, always acting in the best interests of basketball in Australia, and I welcome the outcome of the investigation.”
In light of Gleeson’s findings, the NBL intends to collaborate with BA to enhance its governance structure and has appointed Professor Graeme Samuel to aid in this initiative. Samuel has previously held positions on the boards of the Australian Rugby League and the AFL commissions.
