Maccabi Tel Aviv Basketball Club Control Battle Intensifies with Leaked Recording

A power struggle over the control of the Maccabi Tel Aviv basketball club has escalated following the submission of a transcribed recording to the District Court. The recording features club owner Mody Recanati discussing the situation with a representative of the fan protest group. This recording was attached to an injunction request filed by minority shareholder Richard Deitz, who holds 17.5% of the club's shares. Deitz is attempting to block a deal where the Recanati family plans to sell 29% of their shares to American businessman Jason Levien for $50 million.

The leaked transcript offers a rare glimpse into the internal dynamics of the club's management and the considerations behind past deals and shareholder disputes. The case, initially heard in the District Court, has been moved to arbitration by Judge Ariel Zimmerman.

In the recording, Recanati addresses his long-standing relationship with the Federman family, who co-owned Maccabi Tel Aviv for 26 years. While he noted a close personal connection with the late David Federman, significant disagreements arose over the club's management and budget. Recanati claimed the Federmans consistently opposed budget increases, stating, "The Federmans were usually the ones who always prevented the budget from increasing." He described these management differences as making the partnership particularly complex.

Recanati also discussed businessman Arik Shvilman, founder of the fintech company Rapyd and a club sponsor, and his attempts to gain influence. Recanati expressed early concerns about Shvilman's management style and his interference in professional decisions, calling him "too aggressive" and alleging he tried to meddle in the work of coach Oded Katash and sports director Claudio Coldebella. Recanati suggested that the fear of Shvilman taking over the club was a key reason why he, along with Guy Recanati and Shimon Mizrahi, exercised their right of first refusal to purchase the Federman family's shares.

Regarding the potential buyer Jason Levien, formerly CEO of the NBA's Memphis Grizzlies, Recanati stated Levien would bring not only NBA experience but also significant capital. Levien has reportedly committed to investing $10 million annually for three years and covering any deficits. "I am not looking to control Maccabi," Recanati said in the recording, acknowledging that he and Shimon Mizrahi, aged 77 and 87 respectively, need younger partners. He indicated a willingness to significantly dilute his own holdings to facilitate the club's transition to capable new ownership. "I am not blind, I am 77 and Shimon is 87. We want younger partners," he added, emphasizing the importance of NBA connections and experienced, financially strong partners.

This revelation comes amid a significant legal and business battle for Maccabi Tel Aviv's future, pitting long-time shareholders and the Levien deal against minority shareholders seeking to halt the proceedings. The recording, exposing previously hidden internal disputes, could significantly impact the ongoing fight for control and the future management of one of Israel's most iconic sports clubs.