Maccabi Tel Aviv Basketball Club Faces Ownership Dispute
Translated & summarized from Ice by baba
A contentious arbitration is underway over the ownership of the Maccabi Tel Aviv basketball club, involving shareholders like the Recanati family, Jason Levin, and Richard Deitz. Erick Shtilman, a founder of Rapid, accuses Chairman Shimon Mizrahi of siding with the Recanati family and violating shareholder agreements in the process of bringing Levin into the club. Shtilman believes the arbitration will ultimately grant control to Deitz, while Levin hopes for a quick resolution. The current shareholder structure is detailed, with plans for further share transfers.
The story in 6 lines · by baba
- A dispute over Maccabi Tel Aviv basketball club's ownership is heading to arbitration.
- Erick Shtilman accuses Chairman Shimon Mizrahi of violating shareholder agreements.
- Jason Levin's potential share acquisition is a central point of contention.
- The Recanati family increased their stake to 58% after a $50 million purchase.
- Richard Deitz claims he has the right of first refusal on shares sold to Levin.
- The current shareholder breakdown includes the Recanati family, Levin, Deitz, Mizrahi, and Ashkenazi.
A fierce battle is underway for the ownership of the prestigious Maccabi Tel Aviv basketball club, revealing internal conflicts among its shareholders. The dispute centers on the club's future and the identity of its owners, with "dirty laundry" being aired publicly after years of quiet.
A significant turning point occurred in July when the Recanati family exercised their right of first refusal to purchase 29% of the Federman family's shares for $50 million, bringing their total stake to 58%. Since then, a sharp conflict has emerged between Erick Shtilman, who aspired to be part of the ownership, and the Recanati family.
Allegations surfaced that the Recanati family intended to sell their shares rather than hold them, a suspicion later confirmed by the entry of American Jewish businessman Jason Levin as a shareholder. This followed an attempt by another shareholder, Richard Deitz, to exercise his own right of first refusal to buy the shares himself instead of allowing the sale to Levin.
The complex situation is now in arbitration. Shtilman contends that Deitz holds the right of first refusal for the shares being sold to Levin, and thus has the right to purchase them. Shtilman also claims the Recanati family agreed to the deal with Levin before exercising their right of first refusal, a move he argues violates the shareholders' agreement. He further alleges that the Recanati family and Chairman Shimon Mizrahi are disregarding other shareholders, arbitrators, and the law.
Shtilman has also sharply criticized Mizrahi for aligning with the Recanati family and facilitating Levin's entry into the club, especially after Mizrahi himself exercised his right of first refusal following Deitz's offer. Shtilman expressed hope that Mizrahi would not have "thrown himself into this mud fight" and suggested the chairman made a mistake regarding his legacy, but still has a chance to rectify it in arbitration.
The Recanati family and Mizrahi are pitted against Richard Deitz and Erick Shtilman. Shtilman has escalated his criticism, now targeting Mizrahi and warning them to "get off the tree and compromise before you are completely defeated and thrown out of the hall by force." Shtilman believes the arbitrator will ultimately decide who owns Maccabi Tel Aviv and that Levin's involvement will be invalidated, transferring control to Deitz.
Levin has expressed regret over the dispute, stating he only wants the best for the club and hopes for a swift resolution. As arbitration proceeds, the current shareholder breakdown is: Recanati family (29%), Jason Levin (29%), Richard Deitz (17.5%), Shimon Mizrahi (14.5%), and Ben Ashkenazi (10%). Ashkenazi intends to sell 9% of his stake to Levin.
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