A billion-dollar company could become the WNBL’s saviour, with the league’s losses exceeding $5 million last season. But will Basketball Australia give up a 51% stake in the ownership?
Billion-dollar Melbourne property developer Pelligra Group, which holds the Adelaide Lightning license among a growing portfolio of local and international sporting teams, would consider exploring ownership of the WNBL, despite the league’s losses exceeding $5 million last season.
Basketball Australia, last month, engaged Larry Kestelman, the man who saved the NBL, to help it explore potential ownership models that would improve the league’s position, while allowing it to maintain its majority stake.
But Pelligra’s SA director Steve Wren said the sport’s national governing body would need to relinquish its controlling interest in the league if the third-generation family company was to consider investing capital and resources.
Former Adelaide Lightning player Brooke Basham with Ross Pelligra. Picture: Mark Brake
“Pelligra would always consider any expression of interest or memorandum that came out from the WNBL,” Wren said.
“But it would need to be at least a 51 per cent stake, you’d need to have ownership and I think that’s the thing BA is struggling with — they don’t want to give it away.
“If they were going to maintain control of the rules, we’d be happy, but, from a commercial point of view, nobody is going to invest for a stake of ownership where they don’t have control.
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“It’s quite fair and reasonable BA would maintain an ownership stake and still administer the competition and operations, but Pelligra or someone like Larry would work with them from a commercial perspective to build a better product.”
Pelligra Adelaide Giants Baseball Club, Adelaide Adrenaline ice hockey team and Italian Serie B football club Calcio Catania among its burgeoning portfolio.
It purchased the Lightning in 2021 and recently unveiled a grand $20 million masterplan for the redevelopment of its arena precinct at Findon, which would become home to Volleyball SA, a netball club, a new gym and football pitches, among others.
Pelligra Group hold the license for Adelaide Lightning. Picture: Matt Loxton
“When we came in as the new owners of the Lightning, we wanted to make sure the girls were playing in the most safe and inclusive environment possible,” Wren, who said Pelligra worked closely with the Adelaide 36ers to promote the sport in SA, said.
“We’re spending a lot of time trying to demonstrate that the girls can deliver to a much wider community as role models and to provide a pathway from grassroots to elite basketball.
“Financially, it is a big struggle supporting a WNBL team but, as part of our long-term plan, we believe our best chance of getting to break even is to redevelop the arena precinct, promote the Lightning brand and attract more sponsorship.”
Wren said club owners had recognised each possessed unique skills and had put their differences aside to unite in rallying for change in the WNBL.
That included engaging an outside firm to compile an information memorandum that is set to be presented to the WNBL in the coming weeks.
“It’s a presentation that says ‘look, this is what we need to do, these are the reasons why we need to do that and this is how we’re going to do it’,” Wren said.
PRESSURE MOUNTS ON WNBL AS SPONSORS DEMAND ANSWERS
WNBL sponsors are asking clubs if the league is going to fold amid the uncertainty that has enveloped the competition.
One club official, on Tuesday, told Code Sports its backers have become worried about the WNBL’s future and clubs required more communication from Basketball Australia.
“I’ve had sponsors contact me asking me if the WNBL is going to fold,” the official said.
“We need clarity from Basketball Australia.
“The owners have put together a concept discussion document, as opposed to a hard and fast proposal.
“We need answers because the pressure is mounting.
“The losses from the WNBL clubs isn’t new, but what is becoming apparent is the tolerance to put up with these losses.
Townsville Fire celebrate winning the 2023 WNBL Championship. Picture: Getty Images
“Where is the visibility and profitability? Where is the planning?
“I think the frustration has been amplified by the success of the NBL and the gap between the two competitions is growing every day because there is no horsepower in the WNBL. We’re just floating.”
The source said club owners recently put forward a hybrid ownership model for the league to BA, but are yet to receive a response and are growing increasingly frustrated.
It comes as NBL saviour Larry Kestelman has urged anxious WNBL owners to stick fat with the league in the wake of Basketball WA’s bombshell decision to sell Perth Lynx.
Kestelman is working with Basketball Australia to help revitalise the struggling league, which bled more than $5 million last season.
Code Sports, on Sunday, revealed Basketball WA had decided to either sell or attempt to attract private investment in the Lynx after the club, last season, lost some half a million dollars.
It has sparked concerns other owners could look to abandon the embattled women’s league but Kestelman, speaking after Mitsubishi Motors was announced as an NBL major partner following a 23-year hiatus, preached patience.
Mitsubishi CEO Shaun Westcott shakes hands with Larry Kestelman. (Photo by Quinn Rooney/Getty Images for NBL)
“That’s not what I want to hear,” Kestelman told Code Sports when asked about the sale of the Lynx.
“I’ve heard rumours there’s a number of owners looking to sell or move and I encourage everyone to just hang in there until our process with BA runs its course.
“If we don’t arrive at a formula that everyone is happy with, then they have options.”
Asked if he wanted to take over the WNBL, as some club owners and league greats hoped, Kestelman said he was open to it, but it was more likely the NBL formed a partnership with BA, given the national governing body’s unwillingness to surrender majority ownership.
He said that association could work in a similar vein to the relationship with the second-tier NBL1 competition. The NBL acts as a commercial partner, handling marketing, media, sponsorship and the like for the NBL1, while state associations control operations.
“The best model is a partnership, that’s my opinion,” he said.
“If BA wants to do something different, then I’m open to it, but I don’t have to buy the WNBL.
“I love what we’ve done with NBL1, that model.
“BA has shown intent that they want to continue as the owners (of the WNBL) and, if that’s their intent, that’s absolutely fine by us.
“We need to come up with a model where they leverage our strength, what we do and where we can both help the sport.”
Asked if Perth Wildcats owner Craig Hutchison’s SEN Group could be a potential suitor for the Lynx, Kestelman said the Sydney Kings and Flames, under Paul Smith’s Hoops Capital, had shown there was benefit in alignment across the elite men’s and women’s leagues.
The Lynx are up for sale. Picture: Getty Images
“I do think there’s a model for NBL clubs to work together with WNBL clubs, whether it’s ownership or partnership, and I would encourage all NBL clubs to look into forming those partnerships,” he said.
“But, at the same time, I would want to understand where the model is, longer term.
“It’s a big six months for the WNBL. I ask everyone to engage, talk and explore and then wait to see what the future of the league looks like.”
Basketball WA’s decision to explore ownership options for the Lynx has the support of BA, chief executive Matt Scriven said in a statement.
“A change in ownership is not uncommon with Bendigo Spirit and Adelaide Lighting both being acquired by new owners last season,” Scriven said.
He did not directly address questions about Kestelman’s involvement or BA’s plans to seek private investment in the WNBL.
FEARS MORE OWNERS COULD FOLLOW AS WNBL TEAM PUT UP FOR SALE
A WNBL team is for sale in the wake of recent revelations the elite women’s league is bleeding millions.
The only state basketball governing body with ownership of a WNBL club, no longer able to bear losses in the realm of half a million dollars per season, has resolved to find new owners or investors as the crisis in the women’s league deepens.
Perth Lynx players, agents and other key WNBL stakeholders were, this week, informed of Basketball WA’s plans.
Code Sports, last month, revealed the eight WNBL clubs lost almost $5 million combined, last season, sparking calls for Basketball Australia to give up control of the women’s league it has owned and operated for 43 years.
BA has privately acknowledged change is inevitable and there is some positivity among clubs around the work it is doing, including the involvement of NBL owner Larry Kestelman, but any change will come too late for Basketball WA.
“We have, every year, invested members (state association) funds into the Lynx and we were happy to do that, but we can’t do so at significant losses like we have been incurring,” acting chief executive Evan Stewart said.
“It’s been a bit of a balance between us owning the team because we think it is a pathway versus making sure we’re not losing too much money.”
Perth Lynx is up for sale.
He said Basketball WA had engaged a firm to shop the Lynx in the hopes of attracting a suitable owner or investment.
“We will be going out more formally in the next week or so looking for a private investor, a partner or a new owner,” he said.
“We won’t just give it away to the wrong people, we’ll go through a thorough process and we’ll do what we think is best for the pathway and for our organisation to be in a more positive spot than what it has been over the last three seasons.”
It comes amid broader woe in women’s sport, following Collingwood Football Club’s decision to axe its Super Netball team at the end of season 2023.
A source told Code Sports said there were now fears other WNBL owners could also look to exit their clubs after losses that amounted to, on average, nearly $625,000 last season.
“There’s a lot more competition in female national sporting leagues these days and it can’t be run like it used to be 20 years ago,” Stewart said.
“We need to move with the times and I think the league is certainly doing some good work to look at that.
“We do believe BA will be doing some positive things in the next 12 months to make the league more competitive, which it needs to.
“There’s no one that denies that.”
Melbourne Boomers and Perth Lynx do battle.
Every contracted player from Perth’s 2022-23 campaign became a free agent at season’s end, leaving the club with a mammoth task. Three WA natives have already signed – Amy Atwell, Chloe Forster and Mackenzie Clinch Hoycard – with two more set to be unveiled this week. Stewart said all had been made aware of the situation.
Basketball WA, which, in 2020, was handed control of the Lynx by late former Perth Wildcats’ owner Jack Bendat, will maintain control of the club this season.
Basketball Australia chief executive Matt Scriven said: “Basketball Australia is aware and fully supports Basketball WA’s decision to explore new investment opportunities and ownership options for the Perth Lynx in the WNBL.”
“We understand BWA will undertake a rigorous process in determining the best proposition for the club for the 24-25 season and are committed to ensuring an elite women’s basketball pathway remains in the state.
“A change in ownership is not uncommon with Bendigo Spirit and Adelaide Lighting both being acquired by new owners last season.”