Maccabi Tel Aviv Ownership Dispute Heads to Arbitration

The contentious battle for control of the Maccabi Tel Aviv basketball club has officially moved to a legal arbitration process. After weeks of public disputes and court filings, the opposing parties, Richard Daum on one side, and the Recanati family and Shimon Mizrahi on the other, have agreed on Dr. Israel "Rally" Lashem, a leading Israeli commercial litigation lawyer, to serve as the arbitrator.

The arbitration proceedings are set to officially commence next week. This agreement follows a ruling by Tel Aviv District Court Judge Ariel Zimmerman, who last week rejected Daum's request for temporary injunctions against share transfer deals. Judge Zimmerman instructed the parties to adhere to their original shareholders' agreement and appoint a mutually agreed-upon arbitrator by early September.

The core of the dispute revolves around the Recanati family's intention to sell 29% of the club's shares to an investor group led by Jason Levin for $50 million. Daum, who holds 17.5% of the shares, sought to exercise his right of first refusal to purchase the entire package, providing a bank guarantee of 12 million shekels. However, Shimon Mizrahi, as a veteran director, then asserted a superior right of refusal to acquire approximately 26% of the package. The Recanati family also proposed transferring 7.5% to Levin through a separate channel, moves that Daum claims were designed to prevent him from becoming the controlling owner with 55.5% of the club.

Dr. Lashem, a Harvard Law graduate and a senior partner at the Meitar law firm, is renowned for his expertise in complex, multi-million dollar arbitrations both in Israel and internationally. He is a recognized arbitrator with the Israeli Institute for Business Arbitration and has consistently been ranked among the top legal professionals by international guides like Chambers and Legal 500. His appointment is expected to bring stability to the club amidst this high-stakes ownership struggle.