Maccabi Tel Aviv Control Battle: Mזרחי Exercises Right of Refusal

Shimon Mizrahi, chairman of Maccabi Tel Aviv basketball club, announced Saturday evening that he will exercise his right of refusal to purchase additional shares, aiming to become the largest shareholder and prevent Richard Deitz from gaining control. Mizrahi stated his intention to block what he described as a "hostile takeover" of the team, expressing support for adding Jason Levin as a shareholder. This move comes after Mizrahi rescinded his previous plan to sell some of his shares to Levin.

Under the current arrangement, only Udi Recanati is expected to sell 7.5% of the club's shares to the American businessman Levin, pending shareholder approval. Mizrahi's acquisition of shares would increase his holdings from 14.5% to approximately 40.5%, making him the largest shareholder and thwarting Deitz's potential majority stake. Deitz, who holds 17.5% of the shares, had also declared his intention to exercise his right of refusal, which could have increased his stake to over 55%.

Mizrahi's decision is enabled by a special clause in the shareholders' agreement, allowing him to purchase over 26% of the 29% of shares the Recanati family intended to sell to Levin. He emphasized his lifelong dedication to Maccabi Tel Aviv and his commitment to its future, stating, "Maccabi is the center of my life, and as long as I can contribute to it and protect it, I will do so." He also criticized ongoing "slander" against his partners and the club's leadership.

Mizrahi detailed that the current situation originated from the Federman family's decision to sell 50% of their shares. He confirmed his full support for the Recanati family's decision to exercise their right of refusal, noting that it involves no financial gain for them. He views Levin as a suitable addition due to his Jewish and Zionist background, financial resources, and extensive experience in sports business, including connections to the NBA and familiarity with the EuroLeague.

In a separate statement, Arik Stilman, whose own attempt to become a Maccabi Tel Aviv owner was blocked by Recanati, alleged that Mizrahi is attempting to bring Levin into the club "through the back door." Stilman claims that Mizrahi and Recanati had previously agreed to sell 43% of Maccabi to Levin, with provisions to help him gain majority control. Stilman suggests that Mizrahi plans to transfer 49% of his company's shares to Levin indirectly, bypassing further right of refusal clauses.