Maccabi Tel Aviv Basketball Owners Ordered to Arbitration Amid Share Dispute

A Tel Aviv District Court judge has ordered the feuding shareholders of the Maccabi Tel Aviv basketball club to inform him by Thursday whether they intend to pursue arbitration to resolve their dispute over the team's ownership. Judge Ariel Zimmerman rejected a request by Richard Deitz to temporarily block the team's chairman, Shimon Mizrahi, from exercising his right of first refusal to acquire 40% of the club's shares.

The dispute stems from recent conflicting moves regarding the ownership of Israel's most successful sports team, ending years of stability. It began when the Federman family, holding 29% of the shares, sought to sell them to Eyal Shtilman, CEO of Rapid. The Recanati family objected, exercised their right of first refusal, and planned to join forces with Jason Levin, with Mizrahi's agreement.

Deitz opposed this and declared his intention to purchase the shares. However, last week, Mizrahi announced he would exercise his own right of first refusal, intending to buy the shares himself and increase his stake to 40%. Deitz then petitioned the court to halt this move, alleging that Recanati and Mizrahi were attempting to make significant changes to the club's ownership and management structure, thereby excluding his rights as stipulated in the shareholders' agreement and bypassing necessary approvals.

In his ruling, Zimmerman stated that Deitz's request was not sufficiently clear and that his claims are reserved for arbitration. He noted that while Recanati and Mizrahi believe the actions are finalized, their validity remains uncertain until arbitration concludes. The judge emphasized that interim measures are unnecessary as long as no immediate operational action is pending.