Hawks allege ‘attempted cover-up’ after BA clears NBL owner Larry Kestelman

Illawarra Hawks owner Jared Novelly has accused Basketball Australia of an “attempted cover-up” after an independent investigation cleared National Basketball League owner Larry Kestelman of any wrongdoing, intensifying a long-running dispute that is now drawing global attention.

The findings, delivered by barrister Justin Gleeson after a months-long review, concluded there was no “credible” evidence Kestelman breached the NBL’s code of conduct. The probe, commissioned by Basketball Australia, included consultations with all 10 clubs and found no indication that any had been disadvantaged under Kestelman’s leadership.

Yet the outcome has failed to settle the conflict. Crest Sports and Entertainment, the Hawks’ parent company, responded with a sharply critical statement, questioning why the report has not been released publicly and arguing that transparency is essential for restoring trust.

“This attempted cover-up is paper-thin,” the statement said, adding that confidence in the process cannot exist without full disclosure of the findings.

The dispute centres on Novelly’s long-standing concerns about how the league is governed and how revenue is distributed among clubs. For more than a year, the Hawks owner has accused Kestelman of conflicts of interest tied to commercial arrangements, including partnerships with brands in which he held equity and merchandising rights linked to a label founded by his son.

Additional scrutiny has been directed at the relocation of NBL offices to a property owned by Kestelman’s group and his previous equity stakes in multiple clubs — holdings he has since sold. While the investigation dismissed claims of wrongdoing, the perception of overlapping business interests remains at the heart of the Hawks’ challenge.

Dispute widens beyond Australia

The conflict has already extended beyond domestic channels. Novelly previously took his complaint to FIBA, basketball’s global governing body, which deferred the matter to Basketball Australia. The Hawks have now indicated they expect FIBA may still need to intervene, raising the prospect of international scrutiny.

The disagreement is also playing out in the courts. A New South Wales Supreme Court bid by Novelly to access NBL financial documents was dismissed last year, though an appeal has since been lodged, ensuring the legal dimension of the dispute remains unresolved.

Taken together, the legal, administrative and now potentially global aspects of the case highlight a deeper struggle over control, transparency and accountability within a league that has rapidly expanded in recent years.

Growth story meets governance pressure

Kestelman, who purchased the NBL in 2015, has been widely credited with revitalising the competition after years of instability. The league has since secured major partnerships, expanded its commercial footprint and attracted a record 1.2 million fans during the 2025/26 season.

In a statement following the investigation, Kestelman said the findings vindicated his position and expressed hope the matter could now be put to rest. “I have worked extremely hard to repair and grow the NBL… and have always acted in the best interests of basketball in Australia,” he said.

However, the Hawks’ refusal to accept the outcome underscores a broader issue for the league. Even as it grows commercially, questions around governance and transparency risk undermining confidence among clubs and stakeholders.

Basketball Australia and the NBL have acknowledged the need for stronger oversight, confirming that governance reforms will be pursued with the involvement of Professor Graeme Samuel, who has joined the league’s board.

The episode reflects a familiar tension in modern sport: rapid commercial success can expose structural weaknesses that demand greater accountability. For the NBL, the challenge now is not only to maintain its upward trajectory but to demonstrate that its governance standards can match its ambitions. More details on the league and its structure are available on the official NBL website.

For now, the investigation may have cleared Kestelman, but it has not resolved the deeper questions being asked about how Australian basketball is run — or who ultimately holds power within it.

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