Shimon Mizrahi uses right of refusal to control Maccabi’s ownership

By Aris Barkas/ barkas@eurohoops.net

One day after Richard Deitz announced his decision to use the right of first refusal to become Maccabi’s majority owner, Maccabi Tel Aviv chairman Shimon Mizrahi is using his own right of first refusal to block his move.

Considering the iconic place of Mizrahi in Maccabi, where he has been chairman since 1969, this move is bound to create a rift between Maccabi owners.

Mizrahi explained his decision in an open letter to the fans, which was distributed by the club, accusing Deitz of a “hostile takeover”. It has to be noted that right now it’s unclear who has the majority of the ownership.

The letter is the following: “To Maccabi Tel Aviv fans and lovers,

I have been living Maccabi Tel Aviv for 58 years. Almost two-thirds of my life.

Throughout all these years, I have never missed a practice, and my team has never missed a game, both in Israel and abroad.

I was privileged to be a partner in six European Cups, dozens of championships and trophies, and moments of happiness that cannot be described in words. I did none of this alone. These achievements belong to the players, the coaches, the club employees, my friends on the road, including dear people who are no longer with us, and to you – the fans. It’s always yours.

I know well the tension of a game that is decided by the last ball, the excitement before taking the court, the nights after a big victory, and those when the pain after a loss does not give rest. Even after all these years, nothing is taken for granted for me. The privilege of being part of Maccabi, and the responsibility that comes with it, accompany me every day.

My love for the team and concern for its future led me to decide to exercise my right of refusal and purchase additional shares in the club. This is a commitment that I accept wholeheartedly. Maccabi is the center of my life, and as long as I have the power to contribute to it and preserve it, I will do so.

To this day, I have not spoken out in order not to inflame the flames. However, I can no longer remain silent in the face of the constant slander against my partners, against the club, and against those at its helm through baseless, false representations. My top priority is the players, the coaches, the staff, the fans, and the focus on the team’s success.

In fact, the proceedings we are currently in stem from a step taken by the Federman family, through the Pedenko company, when it put 50% of Maccabi’s shares held by Pedenko up for sale.

Following this, in accordance with the shareholders’ agreement, the right of first refusal of the Naftali company, owned by the Recanati family, was exercised, out of responsibility and concern for the club’s continued success both in the near term and in the future. This is the place to say that the late David Federman had many rights in Maccabi and its achievements. We have walked together over the years in full partnership.

The Recanati family and I work together, and the only goal set before us is the good of the club. I fully supported the Recanati family’s decision to exercise the right of refusal. It’s important to me for you to know: there is no financial gain for the Recanati family in this move.

Out of concern for the club and its future, we found it appropriate to include Jason Levine as a shareholder. I have known Jason for about twenty years. He is a Jew and a warm Zionist, has means, extensive experience in entrepreneurship of sports clubs in general and basketball in particular, extensive connections in the NBA, and familiarity with the EuroLeague. These are extremely important facts in light of the changes in Europe and the challenges that still await us with the EuroLeague.

This is the place to note that these days mark the anniversary of winning the first European Cup in 1977. Maccabi Tel Aviv is no longer a club. Maccabi Tel Aviv is one of the leading clubs in Europe, and it would be appropriate for all of its shareholders to have DNA that matches the spirit of the club and the tradition that has led it for decades. This DNA is tested by dedication over time, by the willingness to put the club before yourself, and by the way you treat it even when you don’t get what you want. Maccabi is bigger than any of us. Whoever seeks to lead it must remember that he came to serve the club, and not that the club was meant to serve him. Even great ambitions require humility to understand this. Unfortunately, I did not notice that whoever seeks to take control of the team understands that the club comes before every person, including the owner.

Anyone who wants to be part of Maccabi must maintain its stability and not undermine it, allow it to concentrate on basketball, and not drag it into struggles again and again. We will not allow a hostile takeover of the club by someone who, in our opinion, does not have Maccabi’s best interests at heart.

Maccabi is heart and soul. It is memories that are passed down from parents to children; it is longing for the people who sat next to us in the stands and are no longer there, and it is children who wear a yellow shirt for the first time and dream of stepping onto the court. This meaning of Maccabi in the lives of so many people is not for sale.

To continue the tradition, to preserve the spirit of Maccabi and pass it on to future generations. So that the children sitting in the stands today can one day bring their own children there, and feel the same love and pride that accompany us all our lives.

In addition to what is required, I would like to point out that for the upcoming season, we decided to allocate the largest budget for the acquisition of players and a professional team that Maccabi Tel Aviv has ever had. This budget alone stands at $32 million, and it is the only one that has made it possible to sign players and a professional team of such stature, including Yam Medar and others, as well as the return of Bonzi Colson. This is just another example of our commitment to the club. We did this out of faith in the team and out of a desire to provide it with the tools to succeed and make us all happy. This investment expresses our commitment in actions, not words.

Now, I hope that peace will also come to Maccabi. We have big challenges ahead of us in the upcoming season, and the team needs the ability to concentrate on them. The noise around it distracts it from the focus it needs and takes a toll on it. It’s time to return center stage to the players, the professional staff, and you, the fans, who give us the wind at our back.

Anyone who truly loves Maccabi should give it some peace and let it win.

Yours, with love and devotion,

Shimon Mizrahi

Chairman of the Maccabi Tel Aviv Basketball Club”

Deitz answers with a video

Richard Deitz’s answer came with a video in which the message is similar to Mizrahi’s, except for the fact that he strongly opposes the sale of the club share to Jason Levine.

Deitz explained his decision as follows: “Yesterday, I exercised my first right of refusal regarding the proposed transfer of most of the shares to Jason Levine. I felt that transferring ownership to a new entity, without a deep and prior connection to Maccabi, is an extremely dangerous thing.

Maccabi is not just a business.

You, the fans, are not just numbers in an electronic spreadsheet that can be shuffled from side to side to generate a return on investment for the owners. Maccabi is passion. Maccabi is stories. Maccabi is legends. Maccabi is improbable victories. Maccabi is the ability to unite, to rally around one common goal and one shared passion. To pass it down from generation to generation in families, to create a common denominator. That’s what we are. And I want to preserve that, and that’s why I stepped up yesterday.

Some of you know me, and many of you don’t. I’ve been here, and many of you have seen me at games in Tel Aviv over the years. I’ve been an owner since 2013. Many of you have also seen me traveling. You see me at games across Europe. I’ve been to too many games in Belgrade over the past few years, and I do it because I care deeply about this club, and I want to bring excellence back to the organization.

I want to bring Maccabi back to the level of expectations that we have, and that you have, for it to be a top team in Europe. A team that wins cups and championships together. The owners, the management, the coaches, the players, and most importantly – the fans. Because without you, without the fans, we’re just a basketball team.

But with you, there are no limits. And we’ve already proven that we can work miracles, and we’ll do it again.

Thank you. Come on, Maccabi”