The National Basketball League is attempting to halt a court case brought by Illawarra Hawks' ownership, stating that all teams agreed to resolve disagreements privately through arbitration rather than taking legal action in public courts as part of their licence agreements. The dispute centres on the league’s confidentiality arrangements and the team's push for improved financial transparency, with potential consequences for how professional leagues manage internal conflicts.
The situation began when the Hawks’ owner, who took control of the team in 2020 through a US-based sports investment group, applied for early access to the league's financial records. The preliminary discovery request relates to licence agreements, revenue sharing and financial governance. This follows broader criticism of the NBL’s management and repeated calls for greater oversight.
The NBL’s legal representatives told the NSW Supreme Court that the matter should be dismissed or postponed, as the licence agreement directs all disputes to be resolved by the Court of Arbitration for Sport in Switzerland, a tribunal that specialises in international sporting matters. They argue that allowing public proceedings would damage the league’s business interests and breach long-standing agreements that require conflicts between teams to remain private.
Lawyers for the Hawks countered that their request for document access is not a legal dispute needing arbitration but rather a necessary step to determine whether a case exists. They warned that beginning arbitration without access to critical documentation would leave key matters unclear. Further complexity has been added by claims involving advertising strategies and possible anti-competitive behaviour by the league.
This legal battle follows a failed $44 million private takeover bid led by the Hawks' owner, which the league rejected. Although NBL leadership has insisted the league is not available for purchase, the disagreement indicates ongoing tensions between ownership groups regarding governance, transparency and commercial authority.
The court's decision may set a precedent for how Australian sports organisations manage the balance between confidentiality and oversight in team operations. A ruling from the NSW Supreme Court is still pending.
