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Billionaire NBL Owner Pays Just $577 a Week to Rent Hobart Stadium - Hobart, TAS
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A Tasmanian parliamentary report has raised concerns over the government’s lease arrangements for the Derwent Entertainment Centre and the proposed sale of surrounding public land.
A Tasmanian parliamentary report has raised questions about the state government’s management of the Derwent Entertainment Centre in Hobart, revealing that a company linked to billionaire National Basketball League owner Larry Kestelman is effectively paying less than $30,000 a year to lease the venue after government payments are taken into account. The arrangement works out at approximately $577 a week, according to the Public Accounts Committee report released on Monday.
The Derwent Entertainment Centre, also known as My State Bank Arena, sits at Wilkinsons Point on approximately 15 hectares of Crown land. Kestelman’s LK Group has been negotiating with the Tasmanian government over a potential purchase and redevelopment of the site. The proposed development has been discussed for several years and could include a mixed-use precinct with retail facilities, accommodation and other commercial developments.
According to the parliamentary report, the venue has a base rent of approximately $200,000 a year, adjusted for inflation. However, the Tasmanian government pays the LK Group about $175,000 annually, meaning the effective amount received by the government is less than $30,000 per year. The committee raised concerns about the transparency of this arrangement and recommended that the lease be reviewed.
The report also found that negotiations over the proposed sale of Wilkinsons Point have continued for around six years, but there is still no binding sale agreement, completed business case or agreed masterplan. The committee said negotiations should be paused until several recommendations are addressed.
The potential redevelopment has been promoted as an opportunity to create new economic activity around the Greater Hobart area. In February 2025, the Tasmanian government announced that it had agreed in principle to sell Crown land at Wilkinsons Point to the LK Group at a value determined by the Valuer-General. Plans discussed for the area included a multi-use retail precinct, a family resort and a hotel complex.
However, concerns have continued over the potential cost to taxpayers and the lack of certainty surrounding the development. A departmental brief prepared after the Tasmanian election reportedly warned that activating the site could cost taxpayers as much as $100 million. The document also stated there was no certainty about the development proceeding or how much LK Group would contribute towards associated costs.
The parliamentary committee found that there was still no agreement on how infrastructure expenses would be shared between the Tasmanian government and LK Group despite years of negotiations. It recommended that the government publish information about the status of negotiations, proposed development changes, estimated public costs and progress on previous recommendations from the Auditor-General.
Tasmanian minister Nick Duigan said the government remained committed to the opportunities associated with Wilkinsons Point and described the site as a significant opportunity for Greater Hobart.
The report puts renewed attention on how public land and publicly owned infrastructure are managed, particularly while the government considers whether to continue negotiations over the future of one of Hobart’s major entertainment venues.
GovernmentTasmanianGroupHobartNegotiations
A Tasmanian parliamentary report has raised questions about the state government’s management of the Derwent Entertainment Centre in Hobart, revealing that a company linked to billionaire National Basketball League owner Larry Kestelman is effectively paying less than $30,000 a year to lease the venue after government payments are taken into account. The arrangement works out at approximately $577 a week, according to the Public Accounts Committee report released on Monday.
The Derwent Entertainment Centre, also known as My State Bank Arena, sits at Wilkinsons Point on approximately 15 hectares of Crown land. Kestelman’s LK Group has been negotiating with the Tasmanian government over a potential purchase and redevelopment of the site. The proposed development has been discussed for several years and could include a mixed-use precinct with retail facilities, accommodation and other commercial developments.
According to the parliamentary report, the venue has a base rent of approximately $200,000 a year, adjusted for inflation. However, the Tasmanian government pays the LK Group about $175,000 annually, meaning the effective amount received by the government is less than $30,000 per year. The committee raised concerns about the transparency of this arrangement and recommended that the lease be reviewed.
The report also found that negotiations over the proposed sale of Wilkinsons Point have continued for around six years, but there is still no binding sale agreement, completed business case or agreed masterplan. The committee said negotiations should be paused until several recommendations are addressed.
The potential redevelopment has been promoted as an opportunity to create new economic activity around the Greater Hobart area. In February 2025, the Tasmanian government announced that it had agreed in principle to sell Crown land at Wilkinsons Point to the LK Group at a value determined by the Valuer-General. Plans discussed for the area included a multi-use retail precinct, a family resort and a hotel complex.
However, concerns have continued over the potential cost to taxpayers and the lack of certainty surrounding the development. A departmental brief prepared after the Tasmanian election reportedly warned that activating the site could cost taxpayers as much as $100 million. The document also stated there was no certainty about the development proceeding or how much LK Group would contribute towards associated costs.
The parliamentary committee found that there was still no agreement on how infrastructure expenses would be shared between the Tasmanian government and LK Group despite years of negotiations. It recommended that the government publish information about the status of negotiations, proposed development changes, estimated public costs and progress on previous recommendations from the Auditor-General.
Tasmanian minister Nick Duigan said the government remained committed to the opportunities associated with Wilkinsons Point and described the site as a significant opportunity for Greater Hobart.
The report puts renewed attention on how public land and publicly owned infrastructure are managed, particularly while the government considers whether to continue negotiations over the future of one of Hobart’s major entertainment venues.
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