In June 2026, it was reported in the press that the CEO of the Stock Exchange is interested in purchasing, together with a partner, the ownership of the Hapoel Hadera football team, similar to other transactions in which private businessmen, Israelis or foreign residents, purchase Israeli teams, such as Mitchell Goldhar at Maccabi Tel Aviv, Alona Barkat at Hapoel Beer Sheva, Yaakov Shahar at Maccabi Haifa, Edmond Safra at Hapoel Tel Aviv, and Barak Abramov at Beitar Jerusalem. Even if the buyer is an experienced businessman who employs lawyers and accountants when purchasing commercial companies, purchasing a football team is not a regular transaction, and it is advisable to consult professionals from the field of sports law with experience in purchasing a sports team, since there is an entire system of laws relevant only to purchasing a sports team.
The first stage in purchasing a football team in Israel is a strict due diligence process, with special emphasis on the regulatory aspects of the Israel Football Association. It is recommended to thoroughly examine the legal structure (non-profit organization or company), prepare a current budget for past debts, obtain appropriate approvals in advance, and ensure the proper management of player contracts. Among other things, it is important to insist on a thorough examination to identify hidden debts, obligations to suppliers and employees, and pending legal proceedings against the team (player lawsuits, proceedings in the judicial institutions of the Association, tax authorities), and to understand whether the club is incorporated as a non-profit organization or a limited liability company (purchasing a non-profit organization requires the approval of the Registrar of Non-Profit Organizations and the adoption of detailed articles of association, while purchasing a company requires the transfer of shares and shareholder agreements with the outgoing owners), and more.
Unlike a regular transaction, when purchasing a sports team, any transfer of ownership or control of a football club requires the prior approval of the Committee for the Transfer of Management Rights of the Football Association. The buyer is required to present proof of financial soundness, lack of a criminal record, and suitability to manage a sports club. The buyer must also take into account the risks of suspension and fines due to crowd behavior, including the strict enforcement rules regarding racism and discrimination offenses, and the team's past. Unlike civil law, many contractual and professional disputes are decided in the Association's tribunals, and this has implications for the team's activities. The Association's tribunals and arbitrators have exclusive jurisdiction over agreements between the team and players and certain functionaries within it, and there is a different statute of limitations.
The entire contractual framework is also different when purchasing a sports team. All employment contracts, including employment contracts of foreign players (and there are specific issues related to this), must be submitted and approved by the Budget Control Authority (where there are also requirements for collateral and guarantees to meet the approved budget prior to the start of the season), and it is important to examine the release clauses, salary, purchase options, and special bonuses. The whole issue of copyright and sponsorships is also complex, and it is important to legally regulate the club's ownership of the name, symbol (logo), and commercial broadcasting and advertising rights. Even at the level of the rights to use the pitch, there is a special complexity, as teams in Israel usually play in municipal stadiums, and it is important to carefully examine the use agreements (Lease/Usage Agreements) with the municipality or the company managing the stadium, which regulate usage fees, operation, and maintenance.
While purchasing a sports team often comes from the emotional side rather than the business side, as in any transaction, the end of an action requires forethought, and it is important to carefully examine all the issues and plan the transaction correctly using tax advisors and lawyers with background and experience in the field. Although it is not always possible, for example, to offset accumulated losses against profits in other businesses, advance planning can sometimes allow this, but more than anything, without proper due diligence (by experts in the field), a suitable system of agreements, and proper planning, purchasing a sports team can turn into a traumatic experience.