Maccabi Tel Aviv Ownership Dispute Shifts Directly to Arbitration
Shareholders in Maccabi Tel Aviv basketball club have abandoned mediation plans and will proceed directly to arbitration next week over a fierce ownership dispute involving key stakes and millions of dollars.
A dramatic shift has occurred in the ownership dispute surrounding the Maccabi Tel Aviv basketball club. Just a week after shareholders agreed to pursue mediation following a judge's recommendation, the parties have decided to bypass mediation entirely and move straight to arbitration, with the first session scheduled for next week.
The Move to Arbitration
During the previous court hearing, the parties accepted Judge Zimmerman's recommendation to attempt a negotiated settlement through mediation before entering formal arbitration. Attorney Moran Meiri was selected to act as the mediator, and a two-week window was initially allotted for the process. However, it now appears that the mediation attempt will not take place at all.
"The parties have chosen to skip mediation and proceed directly to arbitration, with the first meeting set for next week." — Legal sources close to the case
Attorney Dr. Yisrael (Rali) Leshem, whose appointment was previously agreed upon, will serve as the arbitrator. The court ruling grants the arbitrator broad powers to resolve disputes among shareholders, determine rightful stock ownership, and issue interim rulings throughout the proceedings.
Core Conflicts and Stock Disputes
At the heart of the matter is the ongoing conflict among the club's shareholders. Aside from the central transaction concerning 29% of the club's shares held by the Recanati family—previously belonging to the Federman family—a separate dispute has emerged over Ben Ashkenazi's shares. Ashkenazi holds a 10% stake in the club and decided to sell a 9% portion.
Shimon Mizrahi, the Recanati family, and Jason Levin exercised their right of first refusal on the shares, after Richard Deitz also asserted his rights regarding them. The court recently ruled that Levin will participate in the arbitration despite Deitz's opposition, though his involvement will be restricted to the 7.5% he acquired from the Recanati family, without granting him formal shareholder status.
Furthermore, it was determined that Ashkenazi will receive the full 18 million dollars from his share sale: 3.5 million dollars from Deitz and 14.5 million dollars from the Recanati family and Mizrahi. The shares will remain in trust with attorney Alon Riskin, stripped of voting or control rights, until the arbitrator delivers a final decision.