The feud between Australia’s billionaire basketball barons has escalated all the way to the international Court of Arbitration for Sport as the NBL launches legal action against one of its clubs.
In a letter sent to all clubs on Wednesday, seen by this masthead, the NBL announced it had taken legal action against the Illawarra Hawks after “a sustained pattern of conduct which gives rise to serious concerns”.
It represents a counterpunch from NBL owner Larry Kestelman after a series of jabs from Jared Novelly – the American majority owner of the Hawks, who this week is due to take up his posting as Donald Trump’s ambassador to New Zealand, Niue, Samoa and the Cook Islands.
Novelly wrote his own letter to club owners last year proposing a takeover of the NBL, and the removal of Kestelman as chairman.
He has also taken action through the NSW Supreme Court, and his company Crest Sports and Entertainment filed a formal complaint about Kestelman with Basketball Australia, querying the distribution of revenue to clubs and accusing the NBL owner of self-dealing and conflicts of interest.
Kestelman, the Ukrainian-Australian billionaire who co-founded internet service provider Dodo, took over the NBL in 2015. He has overseen a revitalisation of the once embattled league, which welcomed a record 1.2 million fans to games in the 2025-26 season.
However, Novelly and his associates have raised concerns – some of which have been echoed by fellow billionaire club owners Romie Chaudhari of South East Melbourne Phoenix and Mark Arena of Perth Wildcats – around how the league has been run under Kestelman, including the signing of partnerships with brands Kestelman owned equity in, and the relocation of NBL headquarters to a building owned by his property group.
Basketball Australia dismissed the complaint against the league owner earlier this year after a seven-month independent investigation, which found no “credible” evidence he had breached the NBL’s code of conduct. Kestelman described this as a vindication and at the time said he was hopeful of moving on from the matter.
However, Novelly has continued to agitate for the full report to be released, prompting Kestelman to take the front foot.
The club has been served legal papers and the matter will be heard in the Court of Arbitration for Sport in Switzerland.
“We have exhausted every available avenue to resolve this situation and avoid this action but we have no other choice,” Stevenson explained in his letter.
“This action is being taken to protect the integrity of the NBL, the interests of every club, and the value we have collectively built in both the league and the clubs. Each of your club valuations, as well as the league valuation, have been important considerations in our deliberations.”
Stevenson assured clubs that the NBL remained focused on continuing to grow itself, its clubs, partners and stakeholders “for the benefit of everyone involved”, noting the recent season to be one of the most successful in its history in terms of attendance and broadcast ratings.
The NBL and Phoenix declined to comment.
This masthead contacted the Hawks and Wildcats for comment.
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Bridget McArthur is a sports affairs reporter at The Age, covering the intersection of sports and politics/business/economy/society.Connect via X or email.
