Shimon Mizrahi Set to Increase Stake in Maccabi Tel Aviv Basketball Club

Shimon Mizrahi, the chairman of Maccabi Tel Aviv basketball club, is expected to exercise his right of first refusal, potentially increasing his ownership stake to at least 40%. This move comes amid ongoing drama surrounding the club's shareholder structure.

Richard Detz announced on Friday that he was exercising his right of first refusal to purchase the 29% stake in the club previously intended for Jason Levin, which was part of the Rakanti family's shares. Detz also acquired 9% of Ben Ashkenazi's shares, which had already been sold to Levin.

As a founding shareholder, Mizrahi holds priority over Detz in exercising the right of first refusal. If Mizrahi proceeds, he will become the largest controlling shareholder. The shareholders are scheduled to meet on Monday to discuss the matter.

The complex ownership saga began six months ago when the Federman family sold 14.5% of their shares to Eyal Shtilman, CEO of the team's main sponsor, Rapide. The Rakanti family then exercised their right of first refusal, purchasing the Federman shares for $50 million.

Last month, the Rakanti family informed other shareholders of their intention to sell 29% of their stake to an American company owned by Jason Levin. Detz's recent announcement has now blocked that sale to Levin, who also held 9% of Ben Ashkenazi's shares.

Sources close to the club anticipate the dispute may end up in court, suggesting that if shareholders can continually exercise rights of refusal, it could lead to further complications. They noted that Mizrahi's potential exercise of his right could result in him holding a majority of the shares.