State Government backing crucial in Tasmanian NBL bid if Larry Kestelman’s successfully purchases the DEC

The NBL chief executive – who is negotiating to buy the DEC – is eager to set up a Tasmanian team in the competition, but is almost certain to require government backing to proceed.

NBL owner Larry Kestelman is keen to purchase the Derwent Entertainment Centre and surrounding land.

THE viability of an NBL side in Tasmania will rely on league boss Larry Kestelman obtaining government support should he successfully purchase the Derwent Entertainment Centre.

Mr Kestelman, who last met with the Glenorchy City Council on June 3, is understood to be deep in negotiations with the council to buy the DEC and Wilkinsons Point, which was approved for sale by council as a complete site in April.

Glenorchy Mayor Kristie Johnston confirmed to the Mercury on Wednesday night that council had received an unsolicited proposal to purchase the DEC and Wilkinsons Point from Mr Kestelman.

She would not comment on the value of the offer.

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Council will consider whether to enter exclusive negotiations with Mr Kestelman at next week’s meeting.

The NBL chief executive is eager to set up a Tasmanian team in the competition, possibly as soon as 2020-21, but is almost certain to require government backing to proceed.

National Basketball League owner and property developer Larry Kestelman. Picture: Stuart McEvoy

Alderman Johnston said Mr Kestelman was committed to working with Glenorchy City Council and the State Government to see what could be achieved at the prime waterfront site.

“If council does decide to deal exclusively with Mr Kestelman, we would bring any potential agreement back to council for further consideration at the end of that period,” she said.

“The report will be in closed council because it contains commercially sensitive information, but council is committed to being as transparent as possible throughout this process.”

Ald Johnston said council would not consider any offer that didn’t maintain public access to the Wilkinsons Point foreshore and road access via Loyd Rd.

She said they would have more to say after Monday’s council meeting.

A spokesman for the NBL on Wednesday declined an interview request with Mr Kestelman, while Southern Huskies CEO Mike Sutton was also tight-lipped when contacted.

The Huskies attempted to purchase the DEC off the council last year through HydraPlay — a company owned by managing director Justin Hickey — but the council rejected an offer it described as “grossly inadequate”.

Southern Huskies v Wellington Saints at the Derwent Entertainment Centre. Picture: MATT THOMPSON.

In statement provided to the Mercury, Premier Will Hodgman said: “the divestment of the Derwent Entertainment Centre is a matter for the Glenorchy City Council.

“However, the Government remains actively engaged with a number of basketball stakeholders on developing both elite pathways and grassroots for the game in Tasmania.”

He said the Government was “actively engaged with many sporting codes to attract elite level content” to Tasmania.

In February last year the Liberals pledged $10 million to design, plan and construct a multisports indoor centre in Glenorchy, which would be used for sports including basketball, netball, gymnastics, volleyball, futsal and martial arts.

It is unsure whether Mr Kestelman would seek this funding as part of his development vision at Wilkinsons Point, but the NBL boss said on a Melbourne sports radio program in February that markets like Tasmania “definitely need their biggest business involvement, which is government”.