Maccabi Tel Aviv Owners Head to Arbitration Over Shareholder Dispute
A legal battle between the owners of Maccabi Tel Aviv basketball club has escalated to arbitration, following a failed attempt by shareholder Richard Ditz to obtain a restraining order. Ditz filed a request for the order with the Tel Aviv District Court against the actions of the Rekanati family, Shimon Mizrahi, and Jason Levin, while simultaneously initiating arbitration proceedings.
The restraining order was denied by the judge, who directed the parties to the arbitration process. The core of the dispute revolves around the club's shareholder agreement, which dictates a right of first refusal for existing shareholders when new shares are to be acquired. Ditz alleges that Mizrahi is attempting to circumvent these provisions using this right.
The court has mandated an urgent arbitration process, with a deadline of September 9th for the parties to appoint an arbitrator. If they cannot agree on an arbitrator, the chairman of the Israel Bar Association will make the appointment. The judge ruled that all past and future transactions related to the ownership dispute will be subject to the arbitrator's review.
The arbitration is intended to resolve the ongoing power struggles among the club's stakeholders regarding share ownership and control.
