Tasmania to return to NBL after 25-year break

The Mercury can reveal the Tasmanian Government and NBL owner Larry Kestelman have finally signed the deal that will see the state re-enter basketball’s big league, and the DEC will get its much-needed facelift.

• Tasmanian NBL deal close
• DEC redevelopment all budgeted for and ready to go

TASMANIA is officially back in the NBL, the DEC will get its much-needed facelift and Hobart’s northern suburbs will receive almost $220 million worth of infrastructure build.

The Mercury can reveal the Tasmanian Government and NBL owner Larry Kestelman have finally signed the deal that will see the state re-enter basketball’s big league, with the announcement to be officially made today.

The first step will be a taxpayer-funded $68.5 million redevelopment of the 30-year-old DEC, including the building of a new $20 million four-court multisport indoor facility next door.

Artist’s impressions of the revamped Derwent Entertainment Centre.

This will open the door for the planning approval process to begin for a $150 million investment from Mr Kestelman’s company, the LK Group, for a shopping, hotel and restaurant precinct at the adjacent Wilkinsons Point.

The deal also includes a $2 million a year State Government sponsorship for at least the first five seasons, and comes after the Glenorchy City Council agreed to sell the DEC to the government for $8 million back in February.

It will be the first time Tasmania has been in the NBL since the demise of the Devils 25 years ago, as well as bringing vital economic stimulus into post-COVID Hobart, Premier Peter Gutwein said.

Tasmanian Premier Peter Gutwein. Picture: ZAK SIMMONDS

An independent economic impact report stated the deal would create 1200 jobs.

“This development will unlock significant economic development, attract investment and create hundreds of jobs,” Mr Gutwein said.

“This is how we’re rebuilding Tasmania, building on our strengths and providing opportunities for Tasmania, including national league participation, to create new jobs, future investment and economic development.

“We’re proud to be a major sponsor of a Tasmanian NBL team, and the opportunities it provides for grassroots pathways and player development in our state.”

The team will be the NBL’s 10th, and will enter the competition in time for the 2021-22 season.

Artist’s impression of the Derwent Entertainment Centre upgrade.

The deal comes after more than a year of tough negotiations that were also set back by the COVID-19 outbreak that saw a hiatus for more than two months after the in-principle agreement was announced in February.

Some feared the outbreak and the economic impact of coronavirus would kill off the state’s chances.

But Mr Kestelman said it was full steam ahead now for the league’s newest team.

NBL owner Larry Kestelman. Picture: ZAK SIMMONDS

“This is great news for the NBL and the people of Tasmania, who have showed amazing passion to help bring this to life,” he said.

“The final agreement means we can start immediately on the next steps for the planning and upgrade of the DEC, in preparation for a Tasmanian team to take to the court for the start of the 2021-22 season.

“The NBL team will deliver important economic and tourism benefits for Tasmania and bring new jobs and investment to the state.

“Basketball is a global sport, and the NBL team will showcase Tasmania on the national stage and around the world.”

The Derwent Entertainment Centre. Picture: Kelvin Ball

Mr Kestelman said as well as redeveloping the DEC, the process of building the club would now begin in earnest as well.

“This will include engaging with the local community to help choose the name, as well as starting the recruitment of people to lead the club into the future,” he said.

“We will be looking to immediately recruit a CEO to lead the club, and we will work closely with the Tasmanian Advisory Board and the local community to establish a team that all Tasmanians can be proud of, on and off the court.

“We have been encouraged by the interest from corporate Australia in becoming foundation partners of the Tasmanian team.”

TIMELINE

■ June 26, 2019: After a failed push by the Southern Huskies to buy the DEC and join the NBL, Kestelman and the Glenorchy City Council enter exclusive negotiations on the purchase of the DEC, while Kestelman also starts discussions with the Tasmanian Government about the state joining the league.

■ July 9, 2019: Kestelman announces the NBL Blitz is coming to Tasmania, with the government contributing $300,000 to bring the pre-season competition here.

■ September 14, 2019: The Mercury reveals the Wilkinsons Point masterplan for a multi-million shopping, hotel and restaurant precinct, to be developed by Kestelman next door to the DEC should a Tasmanian team get up and the centre redeveloped.

■ September 21, 2019: The NBL Blitz plays in front of big crowds across Tasmania, with the Kingborough Sports Centre featuring on ESPN’s US flagship show SportsCentre, as possible NBA No.1 draft pick LaMello Ball takes to the court for the Illawarra Hawks for the first time.

■ December 17, 2019: The Mercury reveals the deal that will see the DEC redeveloped and a new multisport facility built at taxpayers’ expense, but will see the venues remain in public hands in exchange for the Wilkinsons Point development and the state entering the NBL.

■ February 28, 2020: Kestelman and new Premier Peter Gutwein announce an in-principle agreement that will see Tasmania join the NBL, the DEC redeveloped, building of a new multisport facility, the Wilkinsons Point development and government sponsorship of the team.

■ April 6, 2020: Negotiations on the in-principle agreement are put on hold for two months as the COVID-19 outbreak sees government turn all its focus to community health and the impacts on the economy.

■ May 21, 2020: Negotiations resume, with Mr Gutwein stating funding for the deal had already been budgeted for.

■ July 1, 2020: The Mercury reveals the deal is finally signed, sealed and delivered, and Tasmania will be rejoining the NBL for the first time in 25 years in the 2021-22 season.

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