Point of no return: Novelly complains to FIBA

• Illawarra Hawks owner Jared Novelly files complaint about Larry Kestelman to FIBA
• Novelly accuses Kestelman of a 'remarkable accumulation of power'
• Letter send to International Basketball Federation secretary general Andreas Zagklis

NBL25 champion Illawarra Hawks owner Jared Novelly has sensationally accused NBL owner Larry Kestelman of a "remarkable accumulation of power" in a letter of complaint to FIBA, Code Sports Basketball has reported.

"At the same time as operating the league, Kestelman has held ownership stakes and business interests in at least three of the 10 teams in the NBL in suppliers, sponsors and partner organisations connected to the NBL as well as in property development adjacent to NBL arenas," the letter said.

"This is a remarkable accumulation of power by one individual within a league and its teams."

Novelly wants FIBA to investigate Kestelman and for him to be suspended from any involvement in the WNBL, which he and Tesla chief executive Robyn Denholm assumed control of on April 2, 2025.

The NBL said the allegations as "baseless".

The letter was sent on behalf of the Hawks by Swiss-based partner Thomas Werlen from the legal firm Quinn Emanuel to International Basketball Federation secretary general Andreas Zagklis.

Read the full Code Sports Basketball story here.

It comes as WNBL clubs and Basketball Australia were in "crisis talks" this week about the proposed contractual agreement tabled by the new ownership of the WNBL, Code Sports Basketball reported.

The consortium will assume control of the WNBL on Wednesday April 2, 2025, with Basketball Australia retaining a minority shareholding.

Code Sports Basketball Michael Randall reports: "A number chose not to lock into the new agreement by the deadline and one said there is a real chance some owners would choose not to be involved in the new league."

The breakdown is impacting the WNBL's free agency period with one insider expressing deep concern to basketball.com.au's Peter Brown as Code Sports Basketball reported that these four stipulations are at the centre of the stalemate.

• Requirement to cede advertising control of some court and LED signage.
• Requirement to hand over some elements of intellectual property — team name, colours, logos — to the league.
• Cost of meeting a lift in minimum standards to ensure courts were operated and presented at a level fit for professional sport and broadcast.
• The level of funding, understood to be around $300,000, the league would grant to each club

Hostile Takeover

The Australian's Yoni Bashan reported on Friday, March 21, 2025: "On Thursday, (Novelly) mobilised a hostile takeover of the league to kick out Kestelman, emailing club owners such as Tesla’s Robyn Denholm, owner of the Sydney Kings, with a term sheet full of details of a buyout plan."

Novelly, who is the new US Ambassador to New Zealand and Samoa, wrote: "I will be filing multiple actions against NBLCO by the end of the month.

"I am taking one last shot to try to allow the current ownership to leave peacefully while saving face and reputation."

Kestelman was forced to issue an extraordinary rebuke Novelly's reported "hostile takeover".

"The NBL is not for sale," Kestelman declared.

Novelly wrote to the club owners that he would take legal action before the end of the March.

Novelly's Takeover Terms:

• Each of the 10 NBL clubs would own a 10 per cent share with a seat on the new board.
• Kestelman would receive $1 million from each club.
• He would retain the proceeds of the $35 million sale of Tasmania JackJumpers.
• He would be given an ongoing position such as "honorary president" or a trophy named in his honour.

Novelly caveated his email with: "I apologise if this initiative offends you. That is very far from my intent, but I'm not willing to let the status quote continue and I see this as a reasonable path forward."

Kestelman, who has owned the NBL since 2015, added: "We remain fully committed to the continued and unprecedented growth and success of the NBL."