Racanati Family Faces Legal Hurdles in Bringing New Investor to Maccabi Tel Aviv Basketball
Maccabi Tel Aviv basketball club recently underwent significant management changes, with the Racanati family completing the purchase of the Federman family's 29 percent stake for $50 million last week. This acquisition increased the Racanati family's control in the club to 58 percent. However, they are now working behind the scenes to introduce a new investor, Jewish-American Jason Levine, who is expected to acquire 25 percent of the Racanati shares.
The complexity arises because the Federmans had sold part of their shares to Eric Stillman, founder and CEO of Rapid, which triggered a right of first refusal clause allowing other shareholders to buy the entire 29 percent stake, effectively removing both the Federmans and Stillman from the club. The Racanati family exercised this right to secure their increased ownership.
Unlike the Federmans, who held their shares solely through "Padenco Sport," the Racanatis hold their shares via "Naftali Investments," which includes diverse businesses such as RGE Group, technology investments, and philanthropic activities. This structure complicates selling only part of the basketball club shares, forcing the Racanatis to consider selling shares in the entire company to bring Levine on board.
Executing such a sale would again activate the right of first refusal, risking another shareholder purchasing the Racanatis' shares, as they did to the Federmans. The only way to avoid this is to secure approval from 85 percent of all shareholders for Levine's entry. Since the Racanatis hold 58 percent, they depend on other shareholders, including Shimon Mizrahi (14.5 percent), Richard Deitsch (17.5 percent), and Ben Ashkenazi (10 percent), to approve the move. Even with Mizrahi's support, it would not reach the required majority.
Meanwhile, as long as the Racanatis maintain their 58 percent stake, they must continue to inject significant funds annually into the club beyond the initial $50 million paid. This ongoing financial commitment adds pressure amid the ownership stalemate.
