NBL/Basketball Australia 'divorce' in limbo as prime movers head overseas Basketball Australia chief executive Kristina Keneally. Picture: Tim Hunter. PRIME movers behind a revamped NBL, multi-millionaire Melbourne-based businessmen Scott Stavretis and Larry Kestleman, have flown overseas, with the de-merger from Basketball Australia in limbo. In an email leaked to The Advertiser today, BA chief executive officer Kristina Keneally contacted NBL clubs to update them on the sticking point holding up the official "divorce" - the last two years of the television deal signed by the national federation with Network Ten. BA must provide Ten with a schedule for the 2013-14 NBL season by June 6 but, as it stands, Townsville Crocodiles are not part of the federation's NBL. The Crocs tomorrow have scheduled a morning press conference, most likely for CEO Pat Reidy to announce the club is progressing toward continuing next season in the new NBL, or "National Basketball Competition" - the league's current working title. According to Keneally's email to the clubs, BA yesterday supplied the NBC with a final Heads of Agreement. "At this stage the point of difference that remains outstanding is the quantum of the bank guarantee required as indemnity if Ten and the other media partners allowed BA to assign its rights to NBC," the email says. BA has formally proposed $5m, but I have indicated to the NBC that BA would be prepared to accept $2.5m if the assignment of rights related to Ten only (that is, the other media partners, e.g., Perform, Sky NZ) agreed to novate or terminate and enter into a new contract. BA is currently waiting to hear back from the NBC. That, of course, is going to be difficult with Stavretis and Kestleman overseas and no-one from the existing NBL clubs authorised to speak on behalf of the new NBC. Keneally today was fuming over leaking of the "your-eyes-only" email, which was sent to update and alert clubs on the current state of play between BA and the NBC. "We're only in a position to reiterate what we said the other day in relation to the situation," she said. BA is working to ensure the de-merger goes ahead and I am bound by confidentiality beyond saying anything further. BA's preference appears to be for NBC to negotiate directly with Ten. Earlier this week, Stavretis, the CEO of Acquire Asia Pacific, said the NBC already "had conversations" with Ten and he remained confident of a satisfactory conclusion. Kestleman, the founder and chief executive of Dodo, is unavailable for comment. Keneally's email leaves no doubt BA's preference is for the Heads of Agreement to be signed within 48 hours, which would commit NBC to the following requirements by June 3. All club debt to BA being cleared; NBC has the seven current clubs signed to a new licence agreement to NBC; NBC has negotiated the novation or termination of all existing rights holders agreements with BA (Perform, ANPHA, Sky NZ, and And1) and the novation, termination or assignment of rights with Ten. June 3 is the date nominated by BA and agreed to by NBC because by June 6, BA - as current "owner" of the NBL - is contractually obligated to provide Ten with its playing schedule for 2013-14. The Heads of Agreement also commits NBC and BA to a completion date of July 1, 2013. By this date, BA and the NBC should have completed the following transaction documents: Licence agreement for the NBL trademark; Assignment of Assets; Affiliation Agreement (under FIBA rules); Services Agreement; Deeds of Termination for each club with BA/resignation of BA membership; Deeds of Termination between BA and rights holders (where necessary); Deeds of Novation between BA and rights holders (where necessary) or assignment of rights with Ten's consent. "It would be useful, from a expediency point of view, for the NBC to appoint a legal advisor to undertake the negotiation/drafting etc of the documents in consultation with our lawyers," Keneally told the clubs in her email. BA's lawyers are commencing work today on drafts of the agreements listed. The ball looks to be firmly in NBC and/or the NBL clubs' court, but no one appears to be suiting up. Follow Boti Nagy on twitter at @boti-nagy and at www.botinagy.com