Maccabi Tel Aviv Ownership Battle: Shimon Mizrahi Moves to Buy Shares for $45M
Maccabi Tel Aviv chairman Shimon Mizrahi is set to acquire a 26% stake in the club for $45 million. Shareholder Richard Dietz has launched arbitration and sought a court injunction, alleging a covert attempt to hand control to investor Jason Levin.
Management Drama at Maccabi Tel Aviv
Shimon Mizrahi, the long-standing chairman of Maccabi Tel Aviv Basketball Club, announced on Saturday evening his intention to exercise his right of first refusal to purchase additional shares in the club. This move would position him as the primary shareholder, yet one fundamental question remains unanswered: where will the funding for this transaction come from?
During the summer of 2024, the Recanati family acquired the Federman family's 29% stake in the club for $50 million, subsequently attempting to sell the same package to American investor Jason Levin for the identical amount. Richard Dietz exercised his right of first refusal to block the sale, and over the weekend, Mizrahi followed suit.
As one of the club's founders, Mizrahi holds priority over Dietz under the shareholders' agreement. This priority grants him the right to purchase 26% out of the 29% stake, potentially increasing his total shareholding to 40.5% and making him the dominant controlling owner. The cost of acquiring this 26% stake is estimated at approximately $45 million.
In a statement addressed to fans, Mizrahi confirmed his decision to exercise his right, declaring that he accepts the commitment "with a whole heart." However, he did not specify how the purchase would be financed, which entity would execute it, or whether the funds would be provided by him personally, through additional partners, or via external financing.
"This is a very high and significant sum for someone who is not considered a billionaire," a source close to the club remarked. "One cannot ignore the fact that in a month he will celebrate his 87th birthday. It is unclear why he needs this adventure to become the most dominant owner of Maccabi Tel Aviv."
Another source argued otherwise:
"Shimon has the necessary money; he would not have taken this step if he didn't."
The Financing Structure and Jason Levin's Role
Exercising the right of first refusal is not merely a declaration of intent. The buyer must match the terms of the original transaction and prove the financial capability to complete it within the designated timeframe. Consequently, Dietz is expected to demand proof of Mizrahi's financial sources during the arbitration process.
According to market estimates, the actual funding source behind the transaction is Jason Levin, who recently acquired a 7.5% stake in the club from the Recanati family. Levin is projected to acquire approximately 49% of Mizrahi's holdings (representing 19.85% of the club's total shares). Combined with the 7.5% Levin already owns, his total stake could reach approximately 27%.
This structure would effectively bypass the right of first refusal of other shareholders, as Mizrahi would not be selling controlling ownership of his shares directly to Levin. However, this dynamic could shift if Mizrahi decides to sell Levin the additional 6.5% stake he originally intended to transfer, which would elevate Levin's holdings to 33.5%, making him the primary controlling figure.
Richard Dietz Launches Legal Offensive
Under the shareholders' agreement, disputes must be resolved through arbitration, which Dietz initiated. To prevent the transactions from being finalized during the proceedings, which could last over six months, Dietz filed a motion for an urgent temporary injunction in the Tel Aviv District Court to freeze the current ownership structure.
In a sharp letter released by Dietz, he stated:
"I have submitted an urgent motion for relief to the Economic Division of the Tel Aviv District Court, alongside a notice of arbitration. I took this step with a heavy heart, after Udi Recanati sent a midnight message canceling a scheduled shareholders' meeting and announcing the unilateral transfer of 7,5% of Maccabi's shares to Jason Levin. This transfer, contrary to the provisions of the shareholders' agreement, was the latest in a series of violations. All these breaches were designed to disguise attempts to transfer control of the club to Jason Levin."
Dietz added that while he respects Mizrahi as a club legend, he strongly objects to "conspiracies" against partners who have supported the club unconditionally for 13 years.
Shimon Mizrahi and Jason Levin declined to comment.
