Australia’s NBL teams up with Wollemi Capital to purchase majority WNBL stake

The GIST: We have a winner, folks. A month after governing body Basketball Australia (BA) announced it was selling a majority stake in the Women’s National Basketball League (WNBL), Australia’s National Basketball League (NBL) and the Wollemi Capital Group Syndicate (WCGS) formed a consortium to buy in. Crikey.

The details: Yesterday, the Australian Financial Review reported that climate specialist investment firm WCGS will acquire a 49% stake while the NBL will acquire 29%, adding up to a total 78% share of the league between the two.

The backstory: BA chief executive Matt Scriven confirmed last month that it was open to a potential investor acquiring a majority stake in the WNBL, which has a reported total value somewhere between $20M and $23.3M.

• WNBL Adelaide Lightning franchise owner Ross Pelligra was one of several rumored contenders, as well as Bay FC co-founders Sixth Street Partners and Bluestone Equity Partners. But NBL billionaire owner Larry Kestelman had an edge: He already went through the process of separating from BA in 2015 and oversaw historic NBL attendance last season.

The precedent: Kestelman’s NBL experience positions the WNBL to be run by an experienced sports league owner while benefiting from WCGS’ financial backing — similar to the division of ownership between the private equity firm Carlyle Group and the MLS’ Seattle Sounders when they purchased the Seattle Reign together in March.

• From the WNBL’s POV, there are many prominent examples of leagues who have been built up with investment from their male counterparts, for better or worse. The UK’s NewCo had to fight for Premier League investment when separating from its governing body, and the WNBA is still entangled in a complicated relationship with the NBA. Guess we got a situationship.