Maccabi Tel Aviv Ownership Dispute Shifts to Arbitration
Translated & summarized from Ynet by baba
Shareholders in the Maccabi Tel Aviv basketball club are abandoning mediation and proceeding directly to arbitration to resolve an ownership dispute. Attorney Dr. Israel (Rally) Leshem will serve as arbitrator with broad powers. The conflict involves disputes over shares held by the Racanati and Federman families, as well as Ben Ashkenazi's shares. Ben Ashkenazi will receive $18 million for his shares, which will be held in trust until the arbitration concludes.
The story in 5 lines · by baba
- Maccabi Tel Aviv ownership dispute shifts from mediation to arbitration.
- Arbitration proceedings are scheduled to begin soon with attorney Dr. Israel (Rally) Leshem.
- The dispute involves shares previously held by the Federman and Racanati families.
- Ben Ashkenazi will receive $18 million for his shares, pending arbitration.
- Shares will remain in trust with attorney Alon Raskin until a decision is made.
The protracted ownership dispute at Maccabi Tel Aviv basketball club has taken a new turn, with parties reportedly abandoning mediation efforts in favor of arbitration. Initially, shareholders had agreed to a judge's recommendation to attempt mediation, with attorney Moran Mairi appointed as mediator for a two-week period. However, it now appears this mediation will not proceed.
The case will instead move directly to arbitration, with attorney Dr. Israel (Rally) Leshem set to serve as the arbitrator. Judge Zimmerman had previously suggested the mediation route. The arbitrator will be granted broad powers to resolve disputes among shareholders, determine ownership rights, and make interim decisions.
The conflict centers on disagreements over significant shares of the club. A key issue involves 29% of the club's shares previously held by the Federman family and now by the Racanati family. Additionally, there is a dispute over shares owned by Ben Ashkenazi, who holds 10% and decided to sell 9% of the club.
Shareholders Shimon Mizrahi, the Racanati family, and Jason Levin exercised their right of first refusal on Ashkenazi's shares, as did Richard Deitz. Levin's participation in the arbitration will be limited to a discussion of 7.5% he acquired from the Racanati family, without this constituting recognition of his shareholder status.
Ashkenazi is set to receive the full $18 million from his share sale: $3.5 million from Deitz and $14.5 million from the Racanati family and Mizrahi. Pending the arbitrator's decision, these shares will remain in trust with attorney Alon Raskin, without any voting or control rights.
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