Shimon Mizrahi to Buy Maccabi Tel Aviv Shares to Block Hostile Takeover
Maccabi Tel Aviv BC chairman Shimon Mizrahi announced he will exercise his right of first refusal to purchase additional shares, preventing Richard Deitz from gaining majority control of the EuroLeague club.
The battle for control of Maccabi Tel Aviv BC has intensified as club chairman Shimon Mizrahi publicly addressed the ongoing ownership dispute for the first time, announcing his intention to block what he terms a "hostile takeover."
Mizrahi declared he will exercise his right of first refusal to acquire additional shares, making him the largest shareholder in the historic EuroLeague franchise. The move is designed to prevent minority shareholder Richard Deitz from gaining majority control.
Shifting the Balance of Power
Initially, Mizrahi considered selling a portion of his holdings to American businessman Jason Levin. However, he has reversed that decision. Currently, only Udi Recanati is set to sell a 7.5% stake to Levin, subject to approval by the general assembly of shareholders.
Under a unique clause in the shareholders' agreement, Mizrahi is entitled to purchase just over 26% of the 29% stake that the Recanati family originally intended to sell to Levin. By fully exercising this right, Mizrahi will increase his holdings from 14.5% to approximately 40.5%, becoming the club's dominant shareholder.
This maneuver directly counters Richard Deitz, who holds a 17.5% stake and had expressed intent to exercise his own right of first refusal to push his ownership past 55%. Mizrahi's priority rights effectively neutralize Deitz's bid for majority control.
Mizrahi Defends Club Legacy
Shimon Mizrahi released a comprehensive statement detailing his motives:
"For 58 years, I have lived and breathed Maccabi Tel Aviv. My love for the team and concern for its future led me to the decision to exercise my right of first refusal and purchase additional shares. This is a commitment I take on with a full heart. Maccabi is the center of my life."
He also launched a sharp critique against those attempting to alter the club's governance:
"We will not allow a hostile takeover of the club by anyone who, in our view, does not have Maccabi's best interests at heart. Anyone who wishes to lead this club must remember that they are here to serve the club, not to have the club serve them."
Record-Breaking Budget Confirmed
Addressing the team's professional outlook, Mizrahi highlighted significant financial backing for the upcoming season:
"We have established the largest budget for player acquisitions and professional staff in the history of Maccabi Tel Aviv. This budget alone stands at $32 million, which enabled us to sign top-tier talent, including Yam Madar, and secure the return of Bonzie Colson."
