Maccabi Tel Aviv Basketball Club Faces Ownership Turmoil

Shimon Mazar, the chairman of Maccabi Tel Aviv basketball club, announced Saturday evening his intention to exercise his right of first refusal to purchase additional shares, a move that would make him the primary controlling shareholder. However, the funding for this approximately $45 million deal remains uncertain, raising questions about Mazar's financial capacity, especially given his age of 87.

This development escalates an ongoing management drama within the club. Richard Deitz, another shareholder, has initiated arbitration proceedings and is seeking an injunction to freeze the current ownership structure. Deitz alleges that recent share transfers, including 7.5% from the Recanati family to Jason Levin, were unilateral and violated the shareholders' agreement, aimed at circumventing his rights and transferring control to Levin.

Deitz's arbitration claims will likely focus on his right of first refusal concerning shares Mazar intended to sell to Levin, as well as the transfer of shares from the Recanati family to Levin. A key point of contention will be Mazar's financial ability to complete his purchase, with Deitz expected to demand proof of funds.

Reports suggest Jason Levin may be the ultimate financier behind Mazar's move. Levin recently acquired 7.5% of the club's shares and could potentially acquire up to 49% of Mazar's stake, giving him a significant minority shareholding. This complex web of transactions could see Levin emerge as the second-largest shareholder, behind Deitz, who is expected to hold around 29.5%.

Deitz expressed his disappointment in a sharp letter, accusing unnamed parties of deceiving partners and plotting against him, while asserting his own loyalty to Maccabi. He lamented the internal conflict, stating it reflects negatively on the owners and could lead to a prolonged legal battle with potential professional and financial consequences for the team, just weeks before the season begins. Mazar and Levin have not commented on the situation.