Lyon faces a €65 million euro claim from Botafogo, despite the shared ownership between the two clubs.
Botafogo Questions Values and Legitimacy of Football Transfers Involving John Textor
Botafogo, the iconic Brazilian football club, has raised concerns about the values and legitimacy of football transfers involving John Textor, the leader of the Eagle Football Group. The club has accused Textor of orchestrating suspicious or unfair transfers, with allegations of overinflated economic rights values and opaque deals during regulatory bans.
At the heart of the controversy are transfers involving Botafogo players moving to Lyon, Zenit, and Nottingham Forest. Botafogo alleges that Lyon held economic rights to three of their players valued at around 100 million euros in total, with Luiz Henrique sold to Zenit for 33 million euros, generating significant revenue for Lyon, not Botafogo.
The club accuses Lyon of engaging in transfers during a recruitment ban imposed by the DNCG, the French football financial watchdog, raising questions about the transparency and regulation of these deals. The identities of other players involved in these dealings remain unclear, increasing suspicion about potential phantom transfers or hidden financial benefits benefiting Textor or Lyon rather than Botafogo.
John Textor is also demanding 73 million euros from Lyon, creating further financial and legal disputes between the clubs.
Botafogo is demanding the values of these transfers from Textor, viewing the transactions as detrimental or exploitative to their club's interests. The club values collaboration within the Eagle Football ecosystem and desires for this partnership to continue, but insists that any negotiations involving the sale of a majority stake in the society must pass through a process of dialogue and friendly negotiation with the current majority shareholder.
As a result of cash pooling agreements interruptions due to measures taken by regulatory bodies in France, Botafogo SAF has taken corporate measures to allow for new capital contributions to the Club, in case the reimbursements by Eagle or Olympique Lyonnais are not immediately viable. The SAF has formally requested reimbursement for previously loaned amounts.
The club emphasizes that investments by third parties would not be necessary if Olympique Lyonnais honors the due reimbursements. The SAF Botafogo reiterates its commitment to ensuring that all discussions involving the future of SAF occur in a transparent, responsible, and respectful manner.
UEFA's decision to demote Crystal Palace to the Europa Conference League and promote Nottingham Forest to the Europa League, citing ownership ties with Lyon, further fuels the controversy. The SAF Botafogo clarifies that the societal actions taken so far consist only of legal authorizations and there is no plan to dilute the equity participation of the majority shareholder at this moment.
In summary, Botafogo questions the fairness, valuation, and regulatory compliance of transfers orchestrated by John Textor involving Botafogo players being moved to Lyon, Zenit, and Nottingham Forest. The controversy centers on possible conflicts of interest, inflated transfer fees, and deals made during financial restrictions on Lyon, which Botafogo views as detrimental or exploitative to their club's interests.
- The financial disputes and allegations of unfair transfers between Botafogo and John Textor's Eagle Football Group, particularly regarding players moving to Lyon, Zenit, and Nottingham Forest, raise concerns about the ethical practices and regulatory compliance in sports business, specifically football.
- Botafogo's financial struggles and the need for reimbursements from Eagle Football Group and Olympique Lyonnais highlight the potential impact of suspicious football transfers on the financial stability of football clubs, underlining the importance of transparency and oversight in sports finance.
