Source :- PERTH NOW NEWS
Basketball Australia’s official investigation into Larry Kestelman has exonerated the NBL mogul, in the latest chapter of his long-running feud with the disgruntled owner of the Illawarra Hawks.
But it is understood Hawks boss Jared Novelly is not prepared to lay down arms and will consider his options, more than a year after first raising concerns over the league’s financial dealings.
BA last year hired pre-eminent barrister Justin Gleeson to consider a formal complaint lodged by Novelly, a wealthy American investor who has been nominated as Donald Trump’s ambassador to New Zealand.
At the centre of Novelly’s concerns were the NBL’s distribution of revenue to its 10 clubs, its financial transparency, and whether Kestelman’s extensive business portfolio had posed conflicts of interest in running the league.
Since Kestelman bought the NBL in 2015, the league has engaged in partnerships with Reebok and Foot Locker, brands in which Kestelman owned equity, and given merchandising rights to a clothing label founded by his son.
Kestelman previously held equity in three of the league’s 10 clubs, though has since sold his shares.
Last year, the NSW Supreme Court threw out a bid to access documents relating to the NBL’s finances that had been launched by Novelly and South East Melbourne Phoenix, another of the league’s clubs. An appeal has since been lodged.
But in another possible blow to Novelly, Gleeson’s BA investigation found “no credible evidence” that Kestelman had breached the NBL’s code of conduct in his running of the league.
Gleeson consulted all 10 NBL clubs, and also found no evidence any had been disadvantaged by conduct alleged in Novely’s complaint.
In a statement issued by the NBL, Kestelman said he considered the findings a vindication.
“I’m pleased this matter is now behind us, and that my name has been cleared,” he said.
“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 and welcome the outcome of the investigation.”Privately, Novelly does not consider the matter finalised, and remains aggrieved with perceived conflicts of interest in Kestelman’s running of the league.
Novelly’s company Crest Sports and Entertainment is expected to address the matter publicly this week.
In the aftermath of Gleeson’s investigation, the NBL will work with BA to strengthen its governance, and has hired Professor Graeme Samuel to assist on the project.
Samuel, who joins the NBL board, has previously served on the Australian Rugby League and AFL commissions.
