Basketball Australia Clears NBL Owner Larry Kestelman After Hawks' Cover-Up Claims

Basketball Australia cleared NBL owner Larry Kestelman. However, the Illawarra Hawks called the decision a 'paper thin cover up,' showing the dispute is not over.
By Newsroom | Sports, Basketball |

Basketball Australia has officially concluded its investigation, clearing NBL owner Larry Kestelman of any alleged wrongdoing. The inquiry stemmed from a formal complaint lodged by Illawarra Hawks' majority owner, Jared Novelly, who had questioned the league's revenue distribution.

Hawks claim 'attempted cover-up' as Basketball Australia clears NBL owner - 1

The Hawks, however, remain unconvinced by the findings, labelling the situation an "attempted cover-up" and a "paper thin cover up." This dismissal follows a year-long dispute between Novelly and Kestelman, marked by accusations of conflicts of interest in league management and a challenge to how funds are allocated among the NBL's ten clubs.

Hawks claim 'attempted cover-up' as Basketball Australia clears NBL owner - 2

Novelly's complaint, initially directed to the International Basketball Federation (FIBA), was subsequently deferred to Basketball Australia for an independent probe. Despite the clearance, Novelly has signalled his intent to continue the fight, indicating that the resolution is far from settled.

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Hawks claim 'attempted cover-up' as Basketball Australia clears NBL owner - 3

Hawks Dispute Integrity Clearance, Cite 'Tarnished Reputation'

The Illawarra Hawks have issued a strong statement criticizing the outcome, asserting that Kestelman has damaged the sport's standing. NBL chief executive David Stevenson emphasized the need for unity post-investigation. The Hawks' ownership group, Crest, acknowledged the process but maintained their stance.

Hawks claim 'attempted cover-up' as Basketball Australia clears NBL owner - 4

This latest development follows a protracted legal and public relations battle. Last year, Novelly's attempt to access NBL financial documents through the NSW Supreme Court was unsuccessful, though an appeal is reportedly in progress.

The conflict escalated in early April 2025, with Novelly reportedly sending a letter to club owners proposing a hostile takeover to oust Kestelman. This move was met with a strong rebuttal from Kestelman, who characterized Novelly's actions as an attempt to generate media attention rather than a legitimate challenge.

The NBL previously dismissed Novelly's legal action as a "fishing expedition," stating that no formal claim had been filed, only a summons issued in the NSW Supreme Court. Court documents from early April 2025 also revealed allegations by Novelly that Kestelman had threatened him, purportedly in response to Novelly's efforts to obtain financial information. The Hawks' legal team has sought access to extensive financial and operational data related to the NBL and Kestelman's associated companies, citing potential breaches of the league's licence agreement.

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Frequently Asked Questions

Q: Why did Basketball Australia investigate NBL owner Larry Kestelman?
Basketball Australia investigated NBL owner Larry Kestelman after the Illawarra Hawks owner, Jared Novelly, complained about league revenue distribution and alleged conflicts of interest.
Q: What was the result of the investigation into Larry Kestelman?
Basketball Australia cleared Larry Kestelman of any wrongdoing. They concluded their investigation and found no issues with his conduct.
Q: How did the Illawarra Hawks react to the investigation's result?
The Illawarra Hawks strongly disagreed with the findings, calling the situation an 'attempted cover-up' and a 'paper thin cover up.' They believe Kestelman has damaged the sport's reputation.
Q: Is the dispute between the NBL owner and the Illawarra Hawks over?
No, the dispute is not over. Despite the clearance, Jared Novelly has stated he will continue to fight the decision and has signalled further action.
Q: What were the main accusations made by the Illawarra Hawks?
The Hawks accused Kestelman of conflicts of interest in league management, questioned how league funds are shared among clubs, and sought access to financial documents. They also alleged Kestelman threatened Novelly.
Q: What happens next in the NBL dispute?
The Illawarra Hawks plan to continue their fight, and Novelly is reportedly pursuing an appeal after an earlier attempt to access NBL financial documents failed in court.