Maccabi Tel Aviv Basketball Ownership Battle Intensifies in Court

The control struggle over the Maccabi Tel Aviv basketball club has escalated with shareholder Richard Deitz filing a request with the Tel Aviv District Court's economic department. Deitz, through his company VR Capital Group, is seeking temporary orders to freeze actions related to the club's ownership structure. This move comes amid a dispute over 9% of Maccabi Tel Aviv shares held by Ben Ashkenazi, which Ashkenazi intended to sell to Jason Levien.

Deitz claims he has already exercised his right of first refusal on these shares and is now trying to prevent actions that could reduce the number of shares he can acquire, potentially impacting future control of the club. The dispute centers on a proposed $18 million deal for the 9% stake, which values the club significantly. Deitz's company announced its intention to purchase the shares under the same terms offered to Levien shortly after the initial proposal.

Additional shareholders, including Shimon Mizrahi and the Recanati family, have also exercised their refusal rights related to Ashkenazi's deal, further complicating the situation. Deitz argues that these recent moves should be viewed as part of a larger effort to reshape the club's ownership map and that an arbitration process should decide the matter before irreversible changes occur.

Deitz's request aims to halt any operational steps concerning the disputed shares, including transfers, registration changes, and the granting of voting or economic rights. He also seeks to freeze previous actions related to Levien's share acquisition until the disputes among shareholders are resolved. His primary goal is to prevent a new ownership structure from becoming a fait accompli before legal and arbitration proceedings conclude.

The court previously placed a caveat on related corporate actions in early September, pending arbitration. This new request follows that precedent, as Deitz seeks to freeze the current situation to ensure a fair resolution. The ongoing arbitration is expected to determine control of Maccabi Tel Aviv, a major Israeli sports club, with the outcome potentially affecting future budgets, decision-making, and long-term investments.