There is never a quiet moment in Hapoel Tel Aviv. After the transfer of ownership to the American purchasing group led by the Mintzberg brothers was completed, which will take effect in the summer, it turns out that there was a big explosion with the current group of owners, over covering the team’s budget deficit until the end of the season. Failure to qualify for the top playoffs hurt the team financially and the dispute between the parties intensified.
On the one hand, the Mintzberg group demanded and sent a warning letter on behalf of the Amit, Polk, Matlon & Co. attorney firm to pay the deficit immediately by the end of the season, by virtue of the claim that according to the agreement the sales group is responsible for all payments. On the other hand, the outgoing group of owners, which includes the Nisanov brothers, Meir Toshev and Ze’ev Greenberg, is not excited and claims that this is an unfounded fear of the Mintzberg group and that according to the agreement the money should be paid through the dilution of the shares.
ONE learned that the escalation in the crisis between the two groups of owners occurred in recent days after each group sent a letter to the association and the chairman of the budget control Siglit Seig. The Mintzberg group asked the association and the control to intervene regarding the infusion of funds for the continuation of the team’s activities until the end of the season, when the Reds suffered a blow Financially difficult by not qualifying for the top playoffs.
The purchasing group did receive the group from the rights transfer committee by the management rights committee of the club on March 1st, but at the same time the agreement with the selling group will enter into force as of June 1st, so the Americans claim through the law firm of Amit Polk , Matlon Co. because the payment to cover the deficit should not be at their expense, but at the expense of the current owners.
The sales team claims time and time again that there is a warranty until the end of the season and there are also instructions regarding what happens if there is a deficit, while on the other hand on the legal side is represented by attorney Roi Rosen. As soon as the team did not qualify for the top playoffs, Hapoel assessed the expected crisis regarding who would pay the deficit and now the current situation is making it very difficult for the team. Each side accuses the other of being responsible for covering the economic deficit, and if the association does not intervene – this is a legal wrangle that will not end soon.
More Ephraim Ofek Aharon, from the law firm of Amit, Pollak, Matlon & Co., responded to the comments: “The contract between the parties explicitly states that the sellers are financially and economically responsible for this season. In general, the sellers are responsible for placing all the required amounts in the group’s account to finance all the necessary expenses until the end of the season.
“The sellers have so far not fulfilled their commitment and my clients expect the budgetary control not to hesitate in confiscating the guarantees that the sellers provided at the beginning of the season. Our customers have already made a payment of NIS 1.7 million directly to the sellers in exchange for part of their shares and they are encouraged to use this amount for the payments required for the club until the end of the season.”
If that is not enough, it is already clear that the Reds will not have money to pay the salaries for the month of April, which will be paid in May. Regarding the March salaries, which will be paid in April, it is not yet clear whether the team will be able to pay and it is clear to everyone that the financial deficit until the end of the season could be extremely devastating. In the meantime, Haim Silves’ group will hope to avoid unnecessary entanglement in the underground struggles.