Maccabi Tel Aviv Ownership Battle Erupts Amid Legal Disputes

A fierce legal battle has erupted over control of the Maccabi Tel Aviv basketball club, involving complex share transactions, right of first refusal claims, and potential arbitration. The dispute centers on a series of deals initiated after the Recanati family acquired a 29% stake for approximately $50 million in July, increasing their total ownership to 58%. This transaction valued the club at roughly $172 million.

Shortly after, Recanati agreed to sell the 29% stake to American investor Jason Levien for a similar price. However, existing shareholders have the right of first refusal, allowing them to purchase these shares under the same terms. Richard Ditz, who held 17.5%, initially appeared poised to gain control by exercising this right on the 29% stake and shares from Ben Ashkenazi, potentially reaching 55.5% ownership.

This situation was short-lived. Shimon Mizrahi then announced he was also exercising his right of first refusal, claiming priority on a significant portion of the 29% stake. If his move is finalized, Mizrahi could hold around 40% of the club, significantly reducing Ditz's potential share. Both Ditz and Mizrahi claim their actions are aimed at protecting the club's interests, with Mizrahi vowing to prevent a "hostile takeover."

Ditz intends to pursue arbitration and seek an injunction to halt the completion of these transactions, arguing he also has a right of first refusal on shares Mizrahi sought to acquire. He is also questioning the good faith of Mizrahi's actions, given Mizrahi's initial intention to sell to Levien. The shareholder agreement reportedly mandates arbitration for such disputes, suggesting the battle will move to the legal arena.

Further complicating matters are claims by Arik Stillman alleging that some deals with Levien were agreed upon in early July, before Recanati's purchase of the Federman family's shares. These claims raise questions about financing structures and prior agreements. As of Sunday, the final ownership structure remains uncertain, dependent on the completion of deals, interpretation of the shareholder agreement, and a potential arbitrator's decision.