Maccabi Tel Aviv Ownership Dispute Heads to Urgent Arbitration
A fierce battle for control of the Maccabi Tel Aviv basketball club has escalated, with a court ordering shareholders to appoint an arbitrator by September 9. The urgent arbitration process is expected to begin as early as next week, following a directive from the court that all disputed transactions are subject to its outcome. This ruling aims to prevent any changes in the club's ownership structure from becoming final before the core disputes are resolved.
The court's decision came after a request from VR Capital Group, led by Richard Deitz, which holds 17.5% of Maccabi Tel Aviv's shares. Deitz sought to halt planned deals between the Rakefet family, Shimon Mizrahi, and a group led by Jason Levin. Deitz claims these deals are designed to prevent him from acquiring an additional 29% of the club's shares and gaining controlling ownership.
The central issue revolves around the Rakefet family's intention to sell 29% of their shares to Levin's group for $50 million. Deitz announced his intention to exercise his right of first refusal to purchase these shares, providing a bank guarantee of 12 million shekels. However, subsequent moves were made to transfer shares to Levin's group and exercise rights by Mizrahi, actions Deitz argues infringe upon his rights and alter the club's power balance before the main dispute is settled.
The arbitration will now address key questions regarding Deitz's right to purchase the shares, the validity of already approved transactions, and the proper execution of refusal rights.
