Eagle Football’s withdrawal of resources from Brazilian football club Botafogo has left the club facing FIFA bans and mounting unpaid debts
Reigning Copa Libertadores champions Botafogo have filed for judicial reorganisation, the Brazilian equivalent of insolvency protection, as the club finds itself on the brink of financial collapse.
The Rio de Janeiro club confirmed the filing in an official statement on 14 May, describing the move as “a necessary measure to protect the club, preserve its activities, guarantee the fulfillment of its obligations and ensure the continuity of Botafogo’s sporting project.”
It follows what the club describes as a systematic withdrawal of resources under John Textor‘s Eagle Football Group. Botafogo has said more than R$900m ($178.8m) failed to return to the club, while it received no significant capital injections for over a year despite repeated internal warnings about deteriorating cash flow.
In the same period, other Eagle Football assets received substantial investment – the statement specifically references approximately $90m in contributions made to Lyon – leaving Botafogo starved of the resources required to sustain basic operations.
Transfer bans and a points threat
Botofogo is already facing multiple transfer bans imposed by FIFA, including one linked to an outstanding debt of $25m owed to Atlanta United over the transfer of Thiago Almada.
Botafogo paid an initial instalment of $10m in February but has failed to meet the second payment, triggering a new ban. Further FIFA sanctions relate to unpaid fees owed to Bulgarian club Ludogorets, over the signing of Rwan Cruz, and to New York City FC for the acquisition of Santi Rodriguez.
Failure to resolve the Atlanta United debt within 90 days risks a six-point deduction in the Brasileirão – a potentially ruinous sporting penalty for a club already navigating a financial emergency.
In its statement, Botafogot accuses Eagle Football, its management, and John Textor’s direct representatives of being “fully aware of the seriousness of the financial situation” while remaining “the main beneficiaries of the financial structure that withdrew significant resources from the club without corresponding capital replenishment.”
Textor himself has since been removed as director at Botafogo, with shares in the club having served as collateral against a loan from American investment fund Ares Management.
The judicial reorganisation filing, the club argues, was rendered unavoidable not only by the financial pressure but by a specific FIFA determination. The governing body clarified that an earlier precautionary measure filed by Botafogo did not carry the legal equivalence of a formal judicial reorganisation process, meaning the club had to escalate its legal position to unlock the protections that might shield it from further sporting sanctions.
In Brazil, judicial reorganisation allows a company to renegotiate debts with creditors under court supervision rather than entering outright bankruptcy.
Botafogo are arguing that all outstanding football debts should be considered within this framework, which would limit FIFA’s ability to impose separate sanctions running in parallel.
The club insists it will continue to operate normally throughout the process. Salaries for players, coaching staff, and other employees, along with supplier contracts and essential operational commitments, will continue to be met, it says, within the protections afforded by the court proceedings.
Eagle Football’s wider collapse
The crisis at Botafogo mirrors wider turbulence across the Eagle Football portfolio. Lyon, 88% owned by Eagle Bidco, is itself in insolvency proceedings in the UK, with Cork Gully handling the administration.
The club’s own accounts to 31 December 2025 revealed negative equity of €347.9m (405.2m) and net debt of €674.6m.
For Botafogo, the immediate priority is stabilising a situation that has moved with alarming speed. Twelve months on from winning South America’s most prestigious club competition, the club is fighting to preserve its right to compete.
