Phoenix uprising: Melbourne team joins legal action against NBL
Phoenix's managing owner, US entrepreneur Romie Chaudhari, confirmed in a statement to this masthead his club's decision, which escalates the simmering off-court dispute between the league and certain owners.
Tennis star Nick Kyrgios and Australian Boomers guard Dante Exum are also part of South East Melbourne's ownership group. The two clubs are seeking information and documents from the NBL.
It is unclear whether more clubs will follow, but Perth Wildcats majority owner Mark Arena is supportive of their cause, according to three sources familiar with Arena's stance. This masthead contacted Arena on Sunday.
Chaudhari said he was 'left with no other option' than to join his Illawarra counterpart, American billionaire Jared Novelly, in the NSW Supreme Court action after 'years' of not receiving answers to his questions.
Novelly previously aired his displeasure with the NBL's ownership structure and Kestelman's financial transparency, proposing that the league's majority owner should sell his shares equally to the competition's 10 teams. Several clubs are valued at, or north of, $35 million.
'Buying into SE Melbourne was about seizing the opportunity to be part of building a world-class league with passionate fans,' Chaudhari said in the statement.
'So far, we've invested tens of millions of dollars but remain deeply concerned that we are potentially exposed to self-interest and integrity issues. For the league to reach its potential, it must be built on a bedrock of transparency and fairness, and that's why we are taking this step.
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