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Basketball Australia Investigation Finds No Credible Evidence of Misconduct by NBL Owner Larry Kestelman

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Investigation Clears NBL Owner Larry Kestelman of Code of Conduct Breach

An independent investigation has found no credible evidence that National Basketball League (NBL) owner Larry Kestelman breached the league's code of conduct.

The investigation, commissioned by Basketball Australia and conducted by barrister Justin Gleeson SC, was initiated in response to a formal complaint lodged by Jared Novelly, the majority owner of the Illawarra Hawks. The findings have been met with a statement of vindication from Kestelman and criticism from the complainant's company.

Investigation and Findings

Basketball Australia's Integrity Unit engaged Justin Gleeson SC to conduct an independent investigation into claims made by Crest Sports and Entertainment LLC, the owner of the Illawarra Hawks, in 2023.

The key findings of the investigation, as summarized by Basketball Australia, are:

  • The complaint was not considered credible under the National Integrity Framework.
  • No credible evidence was provided to establish a disciplinary or code of conduct breach by Larry Kestelman.
  • The report stated there is no evidence that Kestelman acted in bad faith in his role as NBL owner.
  • No evidence was found that the NBL or its clubs were disadvantaged by the conduct alleged in the complaint.
  • The investigation consulted with all 10 NBL clubs.

The full report has not been made public.

Background of the Complaint

The complaint stemmed from a dispute between Kestelman and Illawarra Hawks majority owner Jared Novelly that has lasted over a year. Novelly had raised concerns about potential conflicts of interest in Kestelman's management of the league and questioned the distribution of league revenue to clubs.

Prior to the Basketball Australia investigation, Novelly had lodged a complaint with FIBA, the international basketball federation, which deferred the matter to the national body. Separately, the NSW Supreme Court previously dismissed an attempt by Novelly to access NBL financial documents; an appeal against that dismissal has been lodged.

Statements and Reactions

Larry Kestelman issued a statement saying he was pleased the matter was resolved and his name had been cleared.

"I have worked extremely hard to repair and grow the NBL for the last 15 years and have always acted in the best interests of basketball in Australia."

He thanked Basketball Australia, its integrity unit, and Justin Gleeson for their handling of the matter.

Crest Sports and Entertainment, the parent company of the Illawarra Hawks, issued a statement critical of the process. The company questioned why Gleeson's report was not made public and urged FIBA to become involved.

A Crest spokesperson stated, "This attempted cover-up is paper-thin," and asked, "Until the report is released in full, how can anyone have confidence in the process or the outcome?"

NBL Group CEO David Stevenson said the NBL has delivered growth in recent years and provides a world-class product. He stated that with the investigation concluded, the focus is on collaboration for future growth.

Context and Business Relationships

Since Larry Kestelman purchased the NBL in 2015, several business relationships have been noted in media reports:

  • The league has engaged in partnerships with brands including Reebok and Foot Locker, in which Kestelman has held equity.
  • Merchandising rights were granted to a clothing label founded by Kestelman's son.
  • Kestelman previously held equity in three NBL clubs but has since sold those shares.
  • Last year, the NBL relocated its Melbourne offices to a building owned by a property group associated with Kestelman.

The NBL reported a record 1.2 million fans attended games during the 2025/26 season.

Next Steps and Governance

Following the investigation, the NBL and Basketball Australia announced plans to collaborate on a project to strengthen governance over the next 12 months. This initiative is described as part of an ongoing program to align Australian basketball with international best practices.

Professor Graeme Samuel AC has been appointed to the NBL board and will assume oversight of this governance workstream. Professor Samuel has previous experience in sports administration, having served on both the Australian Football League (AFL) and Australian Rugby League (ARL) commissions.