Maccabi Tel Aviv Chairman Shimon Mizrahi Exercises Right of First Refusal

Shimon Mizrahi, the veteran chairman of Maccabi Tel Aviv basketball club, announced Saturday evening that he is exercising his right of first refusal to acquire half of the Rakanti family's shares, preventing their transfer to Jason Levin. Mizrahi's move mirrors a similar action taken by Richard Deitz the previous day, but Mizrahi holds priority according to the original shareholders' agreement.

Mizrahi communicated his decision to fans in a detailed letter, stating that he and the Rakanti family are working together for the club's benefit and that the Rakanti family's decision to exercise their right of refusal was fully supported. He emphasized that this move does not result in any financial gain for the Rakanti family.

The Rakanti family had previously purchased shares from the Federman family. Following Deitz's exercise of his option and Mizrahi's subsequent action, the next step involves other shareholders potentially seeking legal recourse to review the contract. Appeals are also possible.

This development follows Ben Ashkenazi's recent announcement that he sold 9% of his shares to Jason Levin, leaving Ashkenazi with only 1% and disqualifying him from board membership. With the exercise of his right of refusal, Mizrahi now holds over 40% of the club's shares, comprising approximately 29% from the Rakanti-Levin transaction and his existing 14.5%. Jason Levin holds an additional 9%, the Rakanti family has 29%, and Ashkenazi holds 1%.