Maccabi Tel Aviv Basketball Ownership Dispute Heads to Arbitration

The ownership dispute over the Maccabi Tel Aviv basketball club is escalating, with parties agreeing to appoint Dr. Israel (Rely) Leshem, a prominent commercial litigation lawyer and Harvard graduate, as an arbitrator to resolve the conflict outside of court.

This decision follows a ruling by the Tel Aviv District Court, which dismissed a request by businessman Richard Deitz, representing the VR Capital Group, for temporary injunctions against the Rakanti family and Shimon Mizrahi. Judge Ariel Zimmerman found Deitz's request unclear and directed the partners to arbitration, as stipulated in their original shareholders' agreement.

The core of the dispute involves a significant deal where the Rakanti family plans to sell 29% of the club's shares to a group led by Jason Levin at a valuation of $50 million. Deitz, who currently holds 17.5% of the shares, claims his right of first refusal to purchase these shares was unlawfully blocked.

The upcoming arbitration will determine control of the team, currently the league's runner-up. In a joint statement, the Rakanti family and Shimon Mizrahi criticized Deitz, stating, "Jason Levin is a shareholder in Maccabi Tel Aviv, and Deitz himself added him to the legal proceedings he initiated. The demand for him to also be a party to the arbitration is logical. One cannot add a person to court proceedings and then claim he is not a party to the dispute when it comes to arbitration."

They further accused Deitz of "double dealing and an unreliable show," questioning why Levin was relevant when Deitz filed his lawsuit but suddenly irrelevant for the arbitration. They urged Deitz to stop manipulating the participants based on his convenience if he wishes to advance the arbitration.