The National Basketball League (NBL) has escalated its legal dispute with the Illawarra Hawks, initiating proceedings against the club's US-based ownership group, Cretz Sport, at the Court of Arbitration for Sport (CAS). This move marks a significant step that could potentially lead to the NBL reclaiming the licence of the foundation franchise.
NBL chief executive Dave Stevenson informed all club owners of the decision in a Wednesday email, describing the action as unprecedented and a last resort following ongoing concerns over the Hawks’ conduct. Stevenson stated that the league had exhausted all other avenues to resolve the matter before resorting to arbitration. This development follows a recent ruling by the New South Wales Supreme Court that sided with the NBL.
The dispute has intensified amid Illawarra owner Jared Novelly’s efforts to challenge the current league leadership. Novelly has initiated legal action against the NBL and its principal owner, billionaire Larry Kestelman. Central to this conflict is Novelly’s push to alter the league’s ownership structure, proposing a draft term sheet to other club owners aimed at shifting control away from Kestelman. His plan envisions the league adopting a cooperative model akin to the NBA, where each of the 10 teams holds an equal 10 percent stake, thereby diluting Kestelman’s majority control.
However, both Kestelman and the NBL’s management have strongly opposed this proposal, affirming that “The NBL is not for sale.” The league has made it clear it does not intend to entertain changes that would undermine its current ownership framework.
The Illawarra Hawks, through a club spokesperson, declined to provide further comment due to the confidential nature of ongoing legal proceedings. The club confirmed its intention to “vigorously defend” its position in the arbitration process.
The legal confrontation marks an unprecedented and highly public showdown within Australian professional basketball, with significant implications for the future governance and ownership structure of the NBL. Both sides remain entrenched in their positions as the dispute proceeds through the legal system.
