Maccabi Tel Aviv Control Battle: Parties Agree on Arbitrator

The ongoing dispute over control of the Maccabi Tel Aviv basketball club has taken a step towards resolution with the agreement on an arbitrator. Richard Dzienciol, the Rekanati family, and Shimon Mizrahi have all consented to Dr. Israel (Rally) Leshem presiding over the arbitration.

The Tel Aviv District Court had previously rejected a request by Dzienciol, filed through VR Capital Group, for interim orders concerning the transfer of club shares. Instead, the court directed the parties to appoint an arbitrator to settle the ownership dispute. The arbitration process is scheduled to commence next week.

Dzienciol had sought to halt planned share transfers announced by the Rekanati family and Mizrahi, arguing they were designed to prevent him from acquiring an additional 29% of the club's shares and gaining controlling ownership. The core of the disagreement lies in the Rekanati family's intention to sell 29% of the shares to a group led by Jason Levin for $50 million. Dzienciol stated his intention to exercise his right of first refusal to purchase these shares, providing a bank guarantee of NIS 12 million.

The court's decision followed an urgent request from VR Capital Group, which holds 17.5% of the club's shares. Dzienciol claimed that subsequent moves to transfer shares to Levin's group and exercise rights by Mizrahi infringed upon his own rights and altered the balance of power within the club. Dr. Leshem is a seasoned commercial litigation and arbitration lawyer, currently a consultant at Meitar Law Firm, and a Harvard Law graduate.