South East Melbourne Phoenix owner confirms he is supporting the fight for greater transparency against the NBL
The NBL was rocked by revelations South East Melbourne intends to support court action against league boss Larry Kestelman. And now the team’s owner has explained why he’s joining the fight.
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South East Melbourne Phoenix’s American owner Romie Chaudhari has confirmed he is supporting the fight for transparency against the NBL, saying: “change is necessary”.
Chaudhari’s declaration comes as the NBL faces the prospect of more teams joining the Phoenix in backing disgruntled Illawarra Hawks owner Jared Novelly ahead of Friday’s Supreme Court battle.
The NBL, on Tuesday, was rocked by revelations that South East Melbourne intends to support Novelly’s court action against league boss Larry Kestelman.
It’s understood the Phoenix plan to join as a plaintiff when the discovery motion is heard in Sydney on Friday.
Chaudhari believes greater financial accountability is required to maximise the NBL’s future – a view supported by the club’s co-owners – including Australian tennis star Nick Kyrgios and Boomers guard Dante Exum.
“My main focus is what is best for the future of basketball in Australia,” Chaudhari told Code Sports.
“Therefore I do believe change is necessary to achieve true sustainability and I’m guided by my core beliefs of honesty and full transparency in business.”
It’s the first time since the Novelly-Kestelman war started that another owner has publicly backed Novelly’s stance.
Up until now club owners contacted by Code Sports have been reluctant to go on the record with their views.
The Phoenix – and any NBL team – have until Friday to formally commit as a plaintiff, but at this point the Melbourne-based side is favoured sign on despite teams being told they could be in breach of their licence agreements by taking on the league.
NBL chief executive David Stevenson sent a stern email to the clubs on Tuesday, reminding them of their requirements under the licence agreements.
The NBL has also called an urgent meeting of team owners and Kestelman on Thursday.
“We have become aware that Mr Novelly’s Crest is rallying a coalition of clubs and owners to support his campaign against the NBL and its leadership,” Stevenson said.
“There is no doubt that this campaign is bringing the NBL, the league and the game of basketball into disrepute.
“We want to ensure teams are not unwittingly induced to breach their own licence agreements for the purpose of legitimising the conduct of others”.
Stevenson also suggested Novelly’s push for change could have a detrimental impact on the NBL’s current structure and future.
“Illawarra and Mr Novelly have been on notice of the destabilising impact of their actions for over six months,” Stevenson continued.
“The disregard for due process and breaches of legal obligations (including by improperly commencing court action rather than following the mandatory grievance process prescribed for all clubs and the NBL), have had a material impact on the NBL, its commercial opportunities and therefore all clubs.
“The matters playing out in the public arena are reminiscent of the conduct that almost resulted in the demise of the league before the league’s current ownership was asked to step in.”
According to reports, the NBL’s email prompted a strong response from Perth Wildcats owner Mark Arena.
He asked Stevenson to confirm if clubs that joined the court action would be viewed as bringing the league into disrepute and to assure teams they would not face retaliation if they shared concerns with Basketball Australia.
“In my view, if the NBL and basketball has been brought into disrepute, that is by the NBL’s own actions,” Arena replied.
Chaudhari added in a further email to the NBL and team owners: “Amen … great points, Mark, thanks for sharing!”
Novelly – and the Illawarra Hawks via his company Crest Sport and Entertainment – claim a lack of financial transparency, ownership structure and conflict of interest is rife under Kestelman’s leadership and want change.
It’s understood the Hawks advised other team owners that, by law, they would need to join the discovery action to view any information secured via the court.
Meanwhile, Stevenson also said a complaint about the NBL made to basketball’s international federation made “unsubstantiated and baseless allegations of violations of FIBA’s code of conduct”.
FIBA has referred the matter to BA, which has asked the Hawks to reframe its complaint in line with its national integrity framework.
“The FIBA letter also sought to prevent Mr Kestelman’s involvement in the WNBL in circumstances where Crest unsuccessfully attempted to acquire the WNBL from Basketball Australia in 2024,” Stevenson told team owners.
“Ironically, Mr Kestelman has been accused of a conflict for holding interests in NBL clubs and the league (a fact publicly known prior to Mr Novelly’s investment into Illawarra) despite Crest previously holding an interest in the Bay Area Dragons and a significant interest in the East Asia Super League at the same time.
“Ultimately, clubs and owners should satisfy themselves that they are not prejudicing their own rights to pursue the personal gain of others.”
Originally published as South East Melbourne Phoenix owner confirms he is supporting the fight for greater transparency against the NBL
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