Textor struggles to raise cash as court blocks Botafogo asset sales

January 30 – A Botofogo court has prevented the cash-strapped Botafogo club from selling players and assets.

The court invoked non-compliance with a November ruling in which club owner John Textor and his Eagle Football Holdings could only sell assets if he notified the court and the social club.

Despite the court order, players like Marlon Freitas and Savarino have been traded without the membership being informed.

The judge argued: “Considering the media reports regarding the hasty negotiation of athletes, I determine, as a precaution, the suspension of all acts relating to sales and negotiation of assets and any other acts with economic repercussions for the club, until the strict evidence in the records proves the Compliance with this rapporteur’s decision, as well as unequivocal knowledge of the actions by all parties involved in the process.”

In an interview with Botafogo TV, Textor countered that he did inform the social club of transfer dealings, as the judge had stipulated in November.

It follows a transfer ban from FIFA, imposed last year after the club failed to pay Atlanta United FC a $21 million transfer fee for Thiago Almada. Textor has promised that he will make “a personal investment, for the value needed to pay Atlanta United to end the transfer ban.”

It marks another tumultuous week at Botafogo. Textor also sought to dismiss Thiago Arruda, the CEO of Botafogo’s SAF, but was prevented from doing so by a court injunction, which doesn’t allow changes to the administration. O Globo reports that the pair had previously fallen out after Arruda refused to sign a contract that would formalise the $50 million loan desired by Textor to lift Botafogo’s transfer ban. Textor wanted to sell two players – Danilo and Montoro – to Nottingham Forest for €35 million, but the Botafogo board refused to agree on Thursday.

Textor said: “I mentioned $50 million coming in exclusively to help with working capital. There’s also a portion of the investment that will go towards buying out Ares’ interest. And this puts Hutton (Capital) and GDA (Luma Capital) as new creditors of Eagle. The intention is not for them to be creditors of Botafogo, but shareholders and creditors of Eagle.”

Earlier this week, Textor was ousted from his position as director at Eagle Football Holdings. Investor Ares Management firm activated a contractual clause after Eagle Football failed to meet specific financial obligations.

Contact the writer of this story at moc.l1769783060labto1769783060ofdlr1769783060owedi1769783060sni@i1769783060tnuk.1769783060ardni1769783060mas1769783060