Maccabi Tel Aviv Ownership Battle Heats Up in Court

A traditional pre-season and New Year's gathering hosted by Udi Recanati, a key stakeholder in the Maccabi Tel Aviv basketball club, has highlighted the ongoing power struggle for control of the team. Richard Deitz, who holds 17.5% of the club's shares, was notably absent from the event. Deitz is in a fierce dispute with other shareholders, particularly over the potential introduction of American businessman Jason Levien as a major shareholder.

Deitz previously attempted to acquire a controlling stake of nearly 60% by blocking Recanati's sale of shares to Levien. Deitz argued that transferring control to an investor with no prior connection to Maccabi or European basketball experience was too risky. However, club chairman Shimon Mizrahi exercised his own right of first refusal, stating his commitment to Maccabi and his intention to acquire more shares.

A partnership between Recanati and Mizrahi aims to bring Levien in as a shareholder. Deitz reacted angrily to these moves, filing an urgent request with the Tel Aviv District Court and initiating arbitration proceedings. He accused Recanati and Mizrahi of violating the shareholders' agreement in their haste to transfer 7.5% of Maccabi's shares to Levien, calling it the latest in a series of breaches designed to obscure the transfer of control.

On Tuesday, the Tel Aviv District Court denied Deitz's request for interim orders concerning the share transfers. This decision means his demand to halt actions by Recanati's and Mizrahi's companies was not granted at this stage. The focus is now expected to shift to the arbitration process, as stipulated in the original shareholders' agreement.

Despite the legal battles, Recanati and Mizrahi projected an image of normalcy at the gathering, expressing optimism for the upcoming season and praising the team's players.