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‘Past mistakes’: Deadline revealed as new details of investigation into NBL owner released Basketball Australia has been given NBL owner Larry Kestelman 12 months to address governance concerns and rebuild trust across the league after releasing further findings from a previously confidential investigation into allegations surrounding the running of the competition. Watch the biggest Aussie sports & the best from overseas LIVE on Kayo Sports | New to Kayo? Join now and get your first month for just $1. More than four months after appearing to initially clear Kestelman of wrongdoing, Basketball Australia has clarified the findings of an independent investigation led by Justin Gleeson SC, conceding the league owner had also made “mistakes” during his decade at the helm of the NBL. The seven-month investigation was launched following a complaint from Crest Sports and Entertainment, the owner of the Illawarra Hawks, led by billionaire Jared Novelly, and was supported by the Perth Wildcats and South East Melbourne Phoenix. The three clubs raised concerns surrounding the league’s governance and financial dealings, and have since established the independent Professional Basketball Club Owners Association. The dispute has continued to escalate, with mediation over travel and flight costs failing to produce a resolution, while the clubs have also taken their concerns to world governing body FIBA. Crest has separately launched legal action against Kestelman and the NBL, while the league has taken its own case against Crest to the Court of Arbitration for Sport. READ MORE: Bizarre scenes as ‘ice rink’ chaos sees rivalry clash cancelled mid-game with NBL giants fuming Gleeson’s investigation was completed late last year, before Basketball Australia announced in April that there was no case to refer Kestelman to a disciplinary tribunal. That decision was viewed by Kestelman and the NBL as an exoneration, but Basketball Australia has now acknowledged its original statement did not properly distinguish between the overall decision and the broader findings contained within Gleeson’s report. “Basketball Australia now corrects that statement and provides further information, detail and context regarding Mr Gleeson’s conclusions, and the important steps taken since Mr Gleeson’s report was delivered,” BA said. Gleeson ultimately found Crest’s complaint, which contained what BA described as “extremely serious and broad-ranging allegations”, did not contain sufficient evidence to be referred as a whole to a disciplinary tribunal. Central to Crest’s complaint was the assertion Kestelman had demonstrated himself to be a “bad faith actor” across his decade running the NBL. “In the round, Crest’s complaint is not a credible report supported by sufficient prima facie evidence to refer it as a whole to a disciplinary tribunal formed under the integrity framework,” Basketball Australia said. “Mr Kestelman does not present on the totality of the evidence gathered in the course of the investigation, as a ‘bad faith actor’.” The report also acknowledged Kestelman’s significant role in rebuilding the NBL since purchasing the struggling competition in 2015, transforming a league which was facing serious financial difficulties into one attracting former NBA players and some of the world’s best young prospects. “Mr Kestelman himself has invested an enormous amount of his own time and money, over a decade, in bringing the National Basketball League, its clubs and the game of basketball in Australia back from the brink of financial ruin and collapse, such that they are, in general, prospering and valuable,” BA said. However, the findings were not a complete vindication of Kestelman. Gleeson found the NBL owner had made mistakes during his efforts to rebuild the competition and, at times, had failed to sufficiently separate the interests of the league from his own private business interests. “Mr Kestelman has, in the course of those endeavours, made mistakes, which in the main can be attributed to his drive to turn the fortunes of the National Basketball League around, where in the course of doing so Mr Kestelman has failed to pay sufficient attention to the interests of the National Basketball League where those interests differ from those of his private interests,” Basketball Australia said. NBL Daily: NBL champ stuck in US as passport drama delays return; 36ers make late roster move The Wildcats, Hawks and Phoenix have previously raised concerns surrounding the lines between Kestelman’s basketball and private business dealings, including the premises used for the sport’s Melbourne headquarters. Gleeson found there were specific areas where Kestelman’s actions could potentially have resulted in disciplinary action under Basketball Australia’s Integrity Framework. “There are a number of specific areas where those failings, if one were to focus solely on the past, might possibly have found disciplinary charge under the Integrity Framework,” the report said. However, with remediation already underway or completed when Gleeson reported his findings in December 2025, he recommended Kestelman not face charges at that stage. Instead, Kestelman was to be given 12 months from the report to complete the required changes. “Once due account is given to matters including the processes for remediation either underway or complete as at the time of reporting in December 2025, there is a case for preferring no charges being laid at this point in time, pending Mr Kestelman being afforded a period of one year, to complete the processes of remediation,” the report said. The findings also called for trust to be restored between the NBL and its clubs, describing it as important to the wider health of Australian basketball. Gleeson left the door open for the integrity unit to revisit the matter should Kestelman fail to deliver on the promised changes within the 12-month period. Basketball Australia, which adopted Gleeson’s recommendations, said that work was already underway and “progressing well”, with the league focusing on strengthening its governance arrangements, increasing transparency and addressing procedural issues identified through the investigation. “Basketball Australia remains committed to ensuring the work is completed within the time frame recommended by Mr Gleeson and that all governance matters are appropriately addressed,” BA said. The NBL issued a statement in response to Basketball Australia’s findings, confirming the league is already making progress towards meeting the recommendations laid out by BA. “Basketball Australia’s statement reiterates Mr Gleeson’s report found that Crest’s complaint was not credible,” the statement said. “We welcome the acknowledgment of the scale of Mr Kestelman’s incredible contribution to the sport in that he has invested an enormous amount of his own time and money, over a long period, to reinvigorate the League, its clubs and more generally, the game of basketball. “As pointed out by Basketball Australia, all were in a state of financial ruin and collapse, but since Mr Kestelman took ownership of the League, all are now ‘prospering and valuable’. “The NBL and its clubs have experienced unprecedented growth with record attendances, historic broadcast viewership numbers, digital expansion and club valuations. “Basketball Australia, Mr Kestelman and the NBL are working through Mr Gleeson’s recommendations together, and remediation work is ‘progressing well’. “The NBL will continue to focus on growing the League for its fans, clubs and partners, and looks forward to the start of the regular season on September 19.” While Kestelman has avoided disciplinary charges following the investigation, Basketball Australia’s clarification has placed greater focus on the governance failings identified in Gleeson’s report and the changes now expected from the league. Should those changes not be completed within the recommended 12-month period, Basketball Australia has left the door open for the matter to return to its integrity unit.