SAF do Botafogo filed a precautionary measure as part of the process to initiate judicial recovery. Filed on Tuesday (21), the action obtained a favorable decision on Wednesday (22) from the Court of the 2nd Business Court of the District of the Capital of Rio de Janeiro.
In a note, in addition to confirming the request, SAF stated that it included in the request the temporary suspension of the voting rights of the majority shareholder, Eagle Bidco, which is under judicial intervention by the administrator Cork Gully.
According to management under the command of John Textor, the company “has used this position to obstruct the arrival of new capital to the football club”.
The precautionary measure serves as a preview of judicial recovery. With it, SAF has 60 days to file the request for judicial recovery in fact. During this period, debts are frozen and cannot be enforced by creditors.
In the request, SAF informs that it has more than R$2.5 billion in liabilities, of which R$1.4 billion is short-term debt. Net equity is negative at R$427 million.
Even with a minority shareholder, the Botafogo social club also needs to agree to the process.
“The measure has as an absolute priority the protection of the club’s activities and the fulfillment of commitments to its athletes, employees and service providers, who will continue to receive special attention throughout the entire process”, informed Botafogo’s SAF.
See the Botafogo SAF note
“SAF Botafogo filed, this Wednesday (22), with the Court of Justice of Rio de Janeiro (TJ-RJ), the request for Judicial Recovery, as a strategic move for financial reorganization and course correction for the continuity and strengthening of the sports project started in 2022. As part of the request, SAF also requested the temporary suspension of the voting rights of the majority shareholder who, for several months, has used this position to obstruct the arrival of new capital to the football club.
The measure has as an absolute priority the protection of the club’s activities and the fulfillment of commitments to its athletes, employees and service providers, who will continue to receive special attention throughout the entire process.
Judicial Recovery is a legal instrument for business restructuring, also provided for in the SAF Law, which allows the creation of an environment of stability, enabling structured renegotiation with creditors, the reorganization of financial flow and the improvement of administrative discipline, always focusing on preserving the operation.
Over the last four years, SAF has promoted relevant advances on and off the field, with historic achievements such as the Libertadores and the 2024 Brazilian Championship, as well as important investments in infrastructure, including the CT and the Nilton Santos Stadium. At the same time, the current scenario also reflects the frustration of relevant financial inflows and the discontinuity of certain supports provided for in the originally structured model, which directly impacted the company’s cash flow and required the adoption of reorganization measures.
This context imposes an objective reading of the challenges faced, as well as the need for structural adjustments that are now being conducted in an organized manner.
SAF Botafogo remains fully active, normally participating in all sporting competitions, without any impact on its calendar or sporting operations.
In accordance with the legislation, a Recovery Plan will be drawn up and presented to creditors, consolidating the measures necessary for the company’s financial rebalancing.
The Administration reaffirms its commitment to the squad, the technical committee, the collaborators and all the professionals who are part of the club’s daily life, as well as to the Botafogo fans, who are an essential part of its history and its strength.
The moment requires unity and focus. SAF will continue working to ensure the continuity of activities, the maintenance of a competitive environment and the responsible fulfillment of its commitments. With confidence in overcoming this cycle, Botafogo will move forward, with the same ambition and determination that marked its recent trajectory.”
