Richard Dietz to Seek Injunction Against Shimon Mizrahi in Maccabi Control Battle

The battle for control of the Maccabi basketball club is moving into the legal arena. Following Shimon Mizrahi's announcement that he will exercise his right of first refusal to purchase additional shares in the club, Richard Dietz is expected to counter by filing for an immediate injunction to halt the entire transaction, alongside a petition for arbitration under the shareholders' agreement.

Dietz's Four Core Claims

Dietz intends to raise four primary arguments in the upcoming arbitration:

1. His right to exercise the right of first refusal regarding the 6.5% stake that Mizrahi initially sought to sell to Levin.

2. His right to do the same regarding the 7.5% stake transferred by the Recanati family to Levin.

3. A claim of bad faith against Mizrahi, who initially sought to sell part of his holdings to Levin, but after Dietz exercised his right of first refusal, announced he would purchase additional shares himself—a move designed to prevent Dietz from gaining control.

4. Mizrahi's financial capacity to complete the purchase. Dietz is expected to demand proof of the funding sources Mizrahi intends to use to finance the transaction.

Freezing the Status Quo

Under the shareholders' agreement, such disputes must be resolved through arbitration, a process that could take over six months. To prevent any changes in the ownership structure while the proceedings are ongoing, Dietz will seek an immediate injunction to freeze all transactions.

If granted, the ownership structure will revert to the state following the purchase of the Federman family's shares:

• Recanati family — 58%

• Richard Dietz — 17.5%

• Shimon Mizrahi — 14.5%

• Ben Ashkenazi — 10%

Under this scenario, none of the share sales to Levin or the exercises of the right of first refusal will be finalized until a binding arbitration ruling is issued.