After a lengthy search for new ownership, Larry Kestelman and the NBL sold the Tasmania JackJumpers to Brisbane-based private equity firm Altor Capital, the league announced on Sunday.
The JackJumpers were sold for a valuation of $35 million, sources told ESPN, with Astor Capital set to take on a 51% stake in the franchise from the middle of 2025, before assuming full ownership in two years. Kestelman will remain involved with the team over the course of that two year period.
The JackJumpers' substantial valuation comes within 12 months of both the Perth Wildcats and Melbourne United being valued at $40 million. Kestelman sold a 10% stake in United for $4 million - a $40 million valuation - in March, 2024. Sports Entertainment Group owner Craig Hutchison sold the Perth Wildcats to tech entrepreneur Mark Arena for $40 million in July, 2024.
"This is an exciting day for the NBL, the Tasmania JackJumpers and basketball in Tasmania," Kestelman, the NBL's owner and Executive Chairman, said.
"Together with the Tasmanian government and the community, we built this incredible club from the ground up in only five years and in that time the JackJumpers have become an integral part of the state and the NBL. They have enjoyed remarkable success on and off the court and brought so much joy to so many. From the outset the plan was to build a legacy piece for the state and something the community will have to support and celebrate for decades to come."
As part of the deal, 25% of the net profit from the sale will be shared among all NBL teams, sources said; each franchise will receive approximately $900,000 as part of this transaction. These payments would be staggered for when each stage of the transaction is processed.
The JackJumpers are the NBL's newest franchise, joining the league ahead of the 2021-22 season. Under head coach Scott Roth, the team won the 2024 NBL Championship, becoming the first Tasmanian team to win an NBL title since the Launceston Casino City in 1981.
Altor Capital is a Brisbane-based alternative asset manager, co-founded in 2015 by Harley Dalton and Ben Harrison.
"We are honoured to be entrusted with the next chapter of the Tasmania JackJumpers and will be focused on continuing the team's incredible momentum," Harrison, Altor Capital's Chief Investment officer, said.
"We intend to grow the JackJumpers' impact on the State and in the community even further. We will also ensure fans continue to have the best entertainment experience in the country, while strengthening the club's infrastructure, and building on the incredible foundations that have been laid since 2020. We will continue to support the JackJumpers Advisory Board and Executive team in their desire to secure a WNBL team for the state of Tasmania."
Along with the desire to establish a WNBL team in the state, Altor Capital has also listed the expansion of MyState Bank Arena as a priority. The JackJumpers have sold out every game in its short history.
"This ownership transition is a very important part of the JackJumpers journey from start-up to a maturing business which has quickly demonstrated its ability to compete with the best sporting clubs in the country on and off the court," JackJumpers CEO Christine Finnegan said.
"This new ownership structure provides us with an important platform to continue to build on the club's incredible successes as an independent licence holder in the NBL, and I am proud we have been able to demonstrate our investment value in only our 5th year in existence.
"This announcement is about a strong future for the JackJumpers as an independent body, and I would like to thank coach Scott Roth and all the current and previous staff and players that have helped build the club from its humble beginnings for this new and exciting phase.
"While celebrating and acknowledging this milestone, I want to ensure everyone understands it is business as usual for the club on and off the court as we focus on its future success. Our focus is on more community engagement and ensuring basketball continues to thrive in this great State."