Government Told Not to Sell Land for Basketball Team

The Tasmanian government has been advised not to sell public land that is linked to the ownership of the JackJumpers basketball team. This comes after the government decided to stop selling state assets. People are asking for more discussion about the land sale.
By Newsroom | Sport, Government |

The stakes are high regarding a proposed land sale tied to the ownership of the Tasmania JackJumpers, Tasmania's National Basketball League (NBL) team. Concerns have been raised about the propriety and public interest of transferring state-owned land, especially in light of recent government decisions to halt other asset sales. This situation involves significant public assets and has prompted advice for the Tasmanian government to reconsider its course of action.

A Timeline of Ownership and Government Decisions

The Tasmania JackJumpers' journey from inception to their current ownership status is linked to a series of government decisions and commercial transactions:

Stop land sale to NBL team owner, Tasmanian government advised - 1

  • June 2019: NBL owner Larry Kestelman begins exclusive negotiations with the Glenorchy City Council to purchase the Derwent Entertainment Centre (DEC) with the aim of establishing a Tasmanian NBL team.

  • February 2020: An in-principle agreement is reached, with the State Government involved in sponsoring the NBL team. The Glenorchy City Council is set to sell the DEC and surrounding land to the State Government and Larry Kestelman, respectively.

  • July 2020: A formal deal is signed, confirming Tasmania's NBL team for the 2021-22 season, with the DEC slated for a $68.5 million government-backed upgrade.

  • February 2025: Larry Kestelman agrees to sell his majority stake in the Tasmania JackJumpers to Brisbane-based private capital firm Altor Capital. The deal is reportedly struck after a three-month negotiation.

  • May 2025: Larry Kestelman expresses a desire to see progress on key club priorities, including construction of a high-performance centre, upgrades to the Silverdome, and expansion of the MyState Bank Arena, before handing over his stake.

  • June 2025: Following a no-confidence motion, the Tasmanian Premier Jeremy Rockliff announces a halt to all planned sales of state-owned businesses and assets, including the Land Titles Office, Metro Tasmania, and the Motor Accident Insurance Board. This decision comes after a preliminary report advised against the divestment of several government enterprises.

Evidence of a Proposed Land Transaction

While the specifics of the current land sale proposal are not fully detailed in the provided articles, the context suggests a transaction linked to the JackJumpers' ownership.

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  • The Guardian reported on May 13, 2025, that Larry Kestelman intended to secure progress on three key priorities before transferring his majority stake in the JackJumpers. These priorities included facility upgrades and expansion, hinting at potential land-use needs.

  • The Tasmanian Greens have expressed disappointment regarding the "hasty sale of significant public land" that occurred without community consultation, with news of the sale appearing in real estate publications. They are calling for a halt to such sales to allow for public discussion.

The JackJumpers' Path to New Ownership

The sale of the Tasmania JackJumpers from Larry Kestelman to Altor Capital was a significant event in the team's history:

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  • February 22, 2025: The ABC reports that Larry Kestelman struck a deal to sell the JackJumpers to Altor Capital, a Brisbane-based private capital firm. The deal was finalized after three months of negotiation.

  • February 23, 2025: ESPN confirms the sale, noting that Larry Kestelman and the NBL sold the team to Altor Capital. The sale implies staggered payments for different stages of the transaction.

  • Legal Counsel: The law firm Allens advised the LK Group on the sale of the Tasmania JackJumpers to Altor Capital, highlighting the formal nature of the transaction.

Government's Shift on Asset Sales

The Tasmanian government's stance on selling state-owned assets has undergone a notable shift:

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  • March 4, 2025: Premier Jeremy Rockliff announces that the government would consider selling off government businesses and assets, including Metro Tasmania and the Land Titles Office, to reduce the state's debt.

  • June 7, 2025: After losing a no-confidence motion, Premier Jeremy Rockliff declares that no sales of state-owned companies will proceed. This decision reverses the earlier consideration of asset divestments.

  • Preliminary Advice: A preliminary report from Mr. Eslake had advised against the sale of several government entities, including the Port Arthur Historic Site Management Authority, Tascorp, Tasracing, TasRail, Entura, and the Public Trustee, suggesting these should remain under government ownership.

Concerns Over Public Land Transactions

The potential land sale associated with the JackJumpers has raised broader questions about transparency and public interest:

  • The Tasmanian Greens have articulated that any sale of public land requires public consultation. They have urged the government to halt such sales until a comprehensive discussion can occur on how the land can best serve the Tasmanian community.

  • Concerns have been raised about potential contamination at some defence sites slated for transfer, with the state government expected to ensure the federal government commits to full remediation prior to any land transfer.

Expert Analysis on Asset Management

  • The preliminary report by Mr. Eslake, commissioned to identify divestment opportunities, ultimately advised against the sale of numerous state-owned enterprises, suggesting they remain under government control. This indicates that even in a review aimed at divestment, there are considered reasons to retain certain assets.

Conclusion: A Call for Scrutiny

The advice to the Tasmanian government to halt a land sale related to the JackJumpers' ownership stems from a confluence of factors. These include the recent government decision to cease all asset sales, concerns raised by the Greens about the lack of public consultation on land transactions, and the broader context of the team's sale to a private capital firm. The situation warrants careful consideration of public interest, transparency, and the long-term implications of transferring state assets. Further details regarding the specific land parcel, its intended use, and the legal framework of the proposed sale are crucial for a complete assessment.

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Sources Used:

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Frequently Asked Questions

Q: Why is the government being told not to sell land?
The government was advised not to sell the land because it is linked to the sale of the JackJumpers basketball team. There are worries about selling public property when the government recently stopped selling other state assets.
Q: Who is buying the JackJumpers team?
A company called Altor Capital is buying the team from its current owner, Larry Kestelman.
Q: Has the government stopped selling state assets?
Yes, the Premier announced that all planned sales of state-owned businesses and assets have been stopped. This happened after a report suggested not selling some of them.
Q: What do people want regarding the land sale?
Some people, like the Tasmanian Greens, want the government to stop the land sale. They say there needs to be a public discussion about how the land can be used for the good of everyone in Tasmania.