Billionaires’ brawl for control of Australian basketball escalates

The Melbourne-based NBL owner dismissed the concept, according to the Hawks affidavit. It claimed Kestelman replied with words to the effect that “volunteers normally get shot”, which “Mr Novelly perceived to be a threat against himself”.

This masthead does not suggest that the statement was meant literally.

According to the discovery claim, Kestelman told Novelly during the exchange “I will be watching your actions and will take appropriate retribution when you step out of line,” and that there would be “no more favours. Last year you got a distribution – don’t expect to get one again”. Kestelman said, it is claimed, that “the model will never change”, which Novelly took as a reference to the NBL’s governance structure.

Illawarra and other teams did receive distributions in the following years from the NBL, which has pledged to split at least $10.5 million between them over the next three years as Kestelman’s company LK Group sells the JackJumpers for $35 million.

“Despite Mr Novelly’s threats, there has been no claim brought against the NBL, just a fishing expedition,” an NBL spokesman said.

“The NBL is disappointed to see Mr Novelly misusing the club and court process to generate media attention. We will address Mr Novelly’s allegations through the proper channels.”

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The Hawks have sought access to a trove of financial and other material from the NBL and Kestelman’s other companies associated with the league and the email to team owners invited them to consider joining the application as a co-plaintiff or bringing their own application.

Among the club’s stated concerns is that related party transactions totalling $15.6 million over the past three years were “were not entered into on a reasonable, commercial and arms-length basis” and that “those related entities may be generating revenue and profits … from NBL related activities” that should flow to teams.

The Hawks have cited other financial discrepancies and sought documents in relation to NBL ambassadorial agreements and royalties from licensed products, over which they believe they also have a potential claim.

The NBL has pointed to the results of a club-commissioned KPMG review of the last three years of the competition’s financials which said there were “no significant issues were noted from the eight scope areas considered”.

Kestelman, who took over the league when it was in financial peril in 2015 and injected tens of millions of dollars into it, said last month that the NBL had never been in better shape, with teams valued at between $30 million and $60 million.

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