Disgruntled NBL clubs lose Supreme Court appeal

A NSW Supreme Court dispute between the NBL and two of its clubs is over after Illawarra and South East Melbourne had their appeal dismissed.

But the disgruntled clubs are considering their options, saying they still have "fundamental concerns regarding transparency, accountability and governance" within the basketball league.

The Supreme Court last year rejected the Hawks and Phoenix's bid to access NBL financial documents, with a subsequent appeal delayed into 2026.

On Thursday, the Supreme Court of Appeal upheld the original judgement, which had determined the clubs breached a clause in their licence that prohibited taking legal action against the NBL.

NBL clubs are only permitted to raise legal disputes with the Court of Arbitration for Sport, not the Australian court system.

The NBL considers the matter closed and is mulling punishment for the two clubs involved given they breached their licences.

"The Court has now twice confirmed what the NBL has maintained throughout; that these proceedings should never have been commenced, and this dispute should have been addressed through the agreed grievance processes, not the courts," an NBL statement read.

But Crest Sports and Entertainment - the company that owns the Hawks - is understood to be considering its options, which could include appealing to the Court of Arbitration for Sport.

In a statement, Crest claimed the NBL was operating "behind a veil of secrecy" and felt the decision to stay proceedings hinged on technicality.

"Today's outcome means the Hawks are unable to pursue that discovery process through the courts at this time, but it does not resolve the substantive issues that prompted the application," a statement read.

"Fundamental concerns regarding transparency, accountability and governance within the league remain.

"The club will now consider the Court's reasons and determine its next steps."

Hawks owner Jared Novelly, also Donald Trump's ambassador to New Zealand, ignited the dispute last year and later recruited RC Aussie Hoops, which owns the Phoenix.

Novelly held concerns over the NBL's financial transparency, distribution of revenue to its clubs and possible conflicts of interest presented by the business portfolio of majority owner Larry Kestelman.