Maccabi Tel Aviv Ownership Battle Continues Amidst Legal Questions
Translated & summarized from Walla by baba
Maccabi Tel Aviv's ownership is in flux as shareholders exercise rights of refusal and legal challenges loom. Jason Levin's potential acquisition of a significant stake is complicated by these disputes, with a court arbitration expected to clarify the situation.
The story in 5 lines · by baba
- Maccabi Tel Aviv faces ongoing ownership disputes with shareholders activating rights of refusal.
- Jason Levin's planned acquisition of a large stake is currently stalled.
- Original shareholders like Shimon Mizrahi have preferential rights under the club's agreement.
- A court arbitration process initiated by Richard Ditch may alter the current ownership structure.
- Player salaries are reportedly secured, but future budget increases could be affected by legal issues.
Maccabi Tel Aviv's ownership dispute is intensifying following a turbulent weekend, with key figures Richard Ditch and Shimon Mizrahi announcing the activation of their "right of refusal." The club's shareholder structure remains unchanged for now, pending potential court injunctions. Currently, the Rakanti family holds 58%, Richard Ditch 17.5%, Shimon Mizrahi 14.5%, and Ben Ashkenazi 10%.
Jason Levin was initially set to acquire 29% from the Rakanti family, which they had previously bought from the Federman family. Further complicating matters, Ben Ashkenazi declared his intention to sell 9% to Levin, with the Rakanti family offering another 7.5% and Mizrahi 6.5%. Mizrahi has since rescinded his offer, leaving Levin's potential acquisition at 45.5% across four deals.
Mizrahi can exercise a greater right of refusal than Ditch due to the original ownership agreement, which favors original shareholders. This allows Mizrahi to potentially increase his stake significantly, provided original shareholders collectively do not exceed 56%. The Rakanti family's sale of 7.5% is permissible without triggering a right of refusal under the original agreement.
Richard Ditch's exercise of his right of refusal will prevent Ben Ashkenazi's 9% sale to Levin. However, the Rakanti family and Mizrahi still have time to exercise their rights. A legal arbitration process initiated by Ditch could lead to court intervention, potentially invalidating some deals and altering the ownership map. Despite the legal battles, the current player payroll of $32 million is reportedly secured by existing shareholders, though future budget increases could be impacted.
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