Maccabi Tel Aviv Shareholder Dispute Escalates Over Arbitrator Inclusion

A dispute among shareholders of the Maccabi Tel Aviv basketball club has intensified, with a new legal filing by Richard "Ditz" Deitz. Deitz has petitioned the Tel Aviv court against a demand by fellow shareholders Udi Recanati and Shimon Mizrahi to include Jason Levin in an ongoing arbitration process. Deitz argues that Levin is not a signatory to the 2013 shareholders' agreement and has no contractual relationship with him, making his inclusion in the arbitration inappropriate.

Deitz stated that his lawyers filed the petition because Recanati and Mizrahi made their consent to the appointment of arbitrator Dr. Israel Lashem conditional on Levin's participation. Deitz claims this condition is unreasonable and has already delayed the arbitration proceedings by four days. He is seeking court guidance on the matter.

Previously, Deitz had sought an injunction against recent management actions and share sales at the club, which the court denied. However, legal sources close to Deitz indicated that any such transactions would be subject to the arbitration outcome. The Recanati family had intended to sell 29% of their shares, acquired from the Federman family, to Jason Levin. Deitz exercised his right of first refusal, followed by Mizrahi, who, due to his preferential rights, could purchase more shares than Deitz.

In response, the Recanati family and Shimon Mizrahi issued a statement asserting that Levin is a shareholder and that Deitz himself included Levin in his initial lawsuit. They argued that demanding Levin's participation in the arbitration is therefore logical and that Deitz's claim of Levin not being a party to the dispute is inconsistent. They accused Deitz of playing games with the identities of participants for convenience.

Deitz countered that his previous injunction request included Levin because it aimed to prevent share transfers to him, which the Recanati family claimed to have completed covertly. The court had noted these transfers with a caveat, deeming them temporary pending further review. Deitz reiterated that the arbitration concerns alleged breaches of the shareholders' agreement by the Recanati family and Mizrahi, a matter Levin is not party to as he did not sign the agreement. He suggested that the Recanati family and Mizrahi's legal counsel should have advised them that their public statement was misleading and embarrassing.