Newcastle has not fielded an NBL team since the demise of the Hunter Pirates in 2006. Before the Pirates, the Newcastle Falcons were the city's basketball flagship for 20 years, from 1979-99.

Basketball at grassroots level in the region is thriving, but the resurrection of an NBL franchise hinges on the establishment of a suitable venue.

The Newcastle Entertainment Centre, built in 1992 and with a capacity of 4500, is not up to NBL standard.

"The No.1 thing that stops Newcastle in its tracks right now is the lack of a venue," Kestelman told the Newcastle Herald. "We will not go to a tired, old venue with limited seating and limited corporate facilities. The league is doing well. The clubs are professionally run. We are viewed globally now and we will not put a club into an inferior venue."

In 2017, the state government promised to build a new indoor arena at "Hunter Park" - a sports and entertainment precinct proposed for Broadmeadow.

The Herald revealed in November a leaked "masterplan" for the precinct - which would include a new 11,000-seat entertainment centre, an aquatic centre, hotels and 2700 dwellings - but the Liberal government is yet to confirm any further details.

Kestelman said construction of a new entertainment centre would "absolutely be a game-changer".

"The clubs derive a lot of revenue from ticketing, corporate hospitality and game day," he said.

"For us, to put a team in where they don't have the right venue is an absolute no go. We are such an entertainment product. What happens close to the court is paramount."

Wests Group chief executive Phil Gardner revealed last week that the licensed-club juggernaut would be prepared to bankroll an NBL and Super Netball franchise if the Government honoured its promise to build a 10,000 seat entertainment centre.

"In a modern facility of that size, with corporate support and the support of the community and the associations, we believe both franchises would be profitable," Gardner said.

Kestelman was aware of the Wests Group's interest in an NBL franchise but has not spoken directly with Gardner.

"The people who run the organisation are a good group of business people and they know what they are doing," he said. "They would be the logical people for us to talk to. We have not had a conversation in earnest ... until there is a conversation around the venue, what is the point?"

The Jack Jumpers, which are backed by the Tasmanian government, entered the NBL in the 2021-22 season and play out of the MyState bank Arena.

As part of the agreement, the government funded a $48m upgrade of the stadium.

The Jack Jumpers have been a revelation. They play in front of full houses, made the grand final series in their inaugural campaign and finished fourth this season.

The NBL, on its death door in 2015 when Kestelman took a majority stake, is experiencing enormous growth.

"The blueprint is there," Kestelman said. "Look how well Tasmania has been received, look at the success of the Jack Jumpers and how much the community loves them.

"We would love to see Newcastle back in the NBL under the right circumstances.

"There are the four factors we have to tick off in considering a new franchise - venue, government [support], community and corporate.

"In my mind, community is not a question. Basketball is strong in the region and the city is big enough. I feel pretty confident about corporate.

"For me it is a question of government and venue. They are the two which need to be ticked off for us to seriously consider bringing NBL to Newcastle, whether it is a new franchise or another one playing games there."

Gold Coast, Canberra and a second side in New Zealand are other potential expansion options.

"We follow our fans and we follow population," Kestelman said. "We would love to have a team in each major centre. If the end game was 14 teams, I think that is a good number. We have no timeline on that. It could be five years, 10 years ... there is no rush."

Kestelman, a property developer with a net worth of $1.1 billion, is fully aware that construction of a new facility can take years to complete.

"At the very least we would need a serious commitment from the Government to updating the current venue as an interim," he said. "Then longer-term a proper venue. Then we need a plan of action as to how that all comes together.

"It doesn't necessarily have to be 10,000 seats. For Newcastle, I would say about 7,000, but what is very important for us is corporate and corporate hospitality.

"There is no rush for us. We can plan it out. If it is three years, four years, five years away ... that is not a problem."

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