Botafogo announced that the Brazilian court has suspended the “political rights” relating to the club held by Eagle, the company that owns its majority stake, at a time when the club seeks to restructure itself after the removal of North American investor John Textor from its command.
Textor and the multinational Eagle Football Holdings Bidco, the entity through which the American acquired the Rio club in 2022, are currently in the midst of a legal dispute, in a scenario of serious financial difficulties faced by Botafogo.
Last Wednesday (23), Botafogo’s SAF (Sociedade Anônima do Futebol, the club’s management body) announced that it had filed a request for judicial recovery with the Court and also requested the temporary suspension of Eagle Bidco’s voting rights as majority shareholder, accusing the company of “obstructing” the entry of new financial resources into the club.
A court decision “ordered the suspension of Eagle’s political rights, prohibiting its interference in corporate deliberations, including the appointment of Durcésio Andrade Mello as interim administrator, with the mandate to reestablish administrative stability, ensure operational continuity and enable solutions for the company’s financial rebalancing”, said the club in a statement released on Tuesday (28).
Durcésio took charge after Textor was removed on Thursday night by an arbitration tribunal, marking yet another front in the ongoing dispute between the American businessman and Eagle Bidco, a decision the club intends to appeal.
The statement hailed Tuesday’s decision as “a fundamental step” towards resolving the “legal and operational insecurity” and to “attract investments, conclude strategic negotiations and honor essential commitments, such as payments to athletes, employees and service providers”.
Textor’s arrival revitalized a club facing serious financial difficulties, ultimately leading to Botafogo winning the Campeonato Brasileiro and Copa Libertadores in 2024.
However, the collapse of Eagle Football Holdings Bidco, which holds majority stakes in Botafogo, France’s Lyon and Belgium’s Molenbeek, has introduced new difficulties.
The holding company plunged into crisis amid growing scrutiny over the American businessman’s management.
Eagle Football Holdings Bidco, currently under receivership in England, recently announced that it is looking to sell the three clubs.
