The Nuggets last competed in the league in 2014 but were forced out due to financial difficulty. Basketball Otago fended off liquidation and have slowly gone about rebuilding the organisation.
Ludlow says the best way to become competitive is to slowly build from the ground up.
''Our plan at the moment is to make sure our structures around our community game are pretty solid.
''We can't just rock out and expect to have an NBL-based side here; we've got to start from the start and build our player base up.
''Hence the reason to be quite cautious about looking at re-entry: we've been there before. If we're going to be doing it again, we don't want to be doing it for a year, or two years. We want to be doing it for the mid-long term and that's what attracts players to Dunedin.''
It is expected that Otago, North Harbour and Porirua will seriously look at applying for a place in the 2018 NBL by next April's deadline while the Manawatu Jets are also a chance of returning.