As long as Israel is a UEFA club they sure as hell can host UEFA events (same with European Basketball). There are a handful of countries not in Europe that play in UEFA (i.e. Kazakstan, Armenia, Turkey (lets be honest the majority of the country is in Asia). Why don't you get off you European high horse. UEFA wouldn't have accepted Israeli membership if it didn't feel like it was at least geographically close and culturally linked in some way to Europe.
Set aside the issue of Israel having issues playing half of the Asian Football Association countries.
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