The JackJumpers, Tasmania’s victorious professional basketball team, has been acquired by the Brisbane-based private equity firm Altor Capital in a deal that has been in the works for three months. The agreement, finalized late on a Friday evening, will see Altor Capital holding a 51% stake in the team starting mid-year, with full ownership to follow in two years. Larry Kestelman, the team’s current owner, will lead the 24-month transition process alongside the JackJumpers’ advisory board. This news comes in the wake of the JackJumpers’ triumph over Melbourne United in the 2024 NBL finals series.
Negotiations and Sale Process
Larry Kestelman, a prominent figure in the National Basketball League and a majority owner of the JackJumpers, expressed his intention to sell the club following its establishment in 2021. The wheels were set in motion back in 2022 when Kestelman amended the team’s license agreement to ensure at least 30% Australian ownership. Seeking the right buyer, Kestelman enlisted the help of Sydney-based consultants Freshwater Strategy in 2023. Despite receiving substantial offers, Kestelman prioritized finding a buyer who shared his vision for the team over monetary gains.
Interest in the JackJumpers surged after their historic championship win, prompting around 30 potential buyers, both local and international, to express interest. While Tasmanian bidders were initially considered, Altor Capital emerged as the frontrunner following exclusive negotiations with Kestelman. The new owners are committed to upholding the values established by the club, ensuring that it remains a team for all Tasmanians.
Impact on the NBL and Wilkinsons Point Development
A significant portion of the proceeds from the sale will be reinvested into the NBL to support the growth of the league and benefit other clubs. This move mirrors previous transactions within the NBL, such as the sale of Melbourne United shares and the Perth Wildcats deal. Moreover, funds will also be directed towards the development of the Wilkinsons Point precinct in Hobart, where the JackJumpers’ home stadium, My State Arena, is located. The updated vision for Wilkinsons Point includes a family holiday park, a hotel, a convention center, and retail spaces, showcasing a grand vision for the area.
Larry Kestelman’s determination to see the Wilkinsons Point project through reflects his commitment to enhancing Tasmania’s infrastructure and amenities. Collaborating with the Tasmanian government, Kestelman has secured funding for essential infrastructure works to jumpstart the development. With plans to expand MyState Bank Arena and enter the Women’s National Basketball League, the JackJumpers are set to embark on a new chapter of growth and expansion.
The sale of the JackJumpers marks the beginning of a series of transformative initiatives for the team, reflecting its meteoric rise since joining the NBL. With a growing fan base and a robust waitlist for tickets, the organization is eyeing further development opportunities, including potential entry into the Women’s National Basketball League. The team’s proposal involves establishing a women’s team in the state’s north, with games to be held at revamped venues like the Silverdome in Launceston and the upcoming sports facility in Devonport.
Larry Kestelman’s unwavering commitment to advancing Tasmania’s sports landscape underscores his dedication to the JackJumpers and the community at large. As the team transitions to new ownership, the future looks bright for both the club and the broader basketball scene in Tasmania.