Lyon charges R$727 million from Botafogo and cites financial guarantees given by John Textor
Lyon published a financial report detailing a charge of 126 million euros against Botafogo, an amount equivalent to around R$727 million. The document points out that the French club, part of the Eagle Football multi-club network, is projecting difficulties in recovering the full amount. The European team’s board estimates a devaluation of almost R$500 million on this credit due to the risk of default. The balance sheet was released this Tuesday and exposes an internal crisis in the conglomerate managed by North American businessman John Textor.
The Lyon leadership alleges that the investor used the French club’s financial structure to endorse the Brazilian team’s operations. Essas guarantees would have been signed without the prior knowledge of the other directors of Eagle Football Group. The situation creates a legal impasse, as Botafogo also files lawsuits against the French in Justiça of Rio of Janeiro. The Rio club charges amounts that exceed R$745 million in lawsuits opened last April.
Lyon identifies hidden financial guarantees in favor of SAF Botafogo
The financial report describes that John Textor had issued credit documents in the name of Lyon or its subsidiaries to cover Botafogo’s obligations. According to the balance sheet, one of these guarantees occurred in March 2024. The objective was to ensure payment to a commercial development company after the purchase of an athlete by the black and white club. Lyon states that the previous financial statements did not contain this data because the management was unaware of such contractual movements.
- Garantia from March 2024: focused on factoring operations for player acquisition.
- Garantia April 2025: signed by OL SASU in favor of creditors of SAF Botafogo.
- Initial maximum Valor: approximately 30 million euros in credits assigned.
- Current Exigência: the beneficiary can collect up to 14.8 million euros directly from Lyon.
The second guarantee mentioned in the document is dated April 2025. Lyon details that the operation involved the assignment of supposed credits relating to player transfers between the two teams that were never completed. The French audit works with the thesis that these obligations were assumed by English legislation. The European club is now trying to understand the full extent of the promises made by the North American manager in closed meetings.
Impasse legal and cross-billing between Eagle Football clubs
The financial relationship between institutions in the Textor network is facing a moment of high institutional tension. Enquanto o Lyon reports millionaire losses, Botafogo obtained favorable decisions in the Brazilian civil sphere. Last month, Justiça of Rio ordered the French club to deposit R$122 million within three business days. Contudo, Lyon formally states that it has not received notifications regarding the legal disputes filed by SAF on Brasil.
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The accounting complexity is worsened by the provision for losses made by the French. By recording a reduction in recoverable value, Lyon signals to the market that it does not count on the rapid entry of these resources. The financial scenario of the Eagle Football group needs stabilization to avoid further drops in market valuations at Europa. Analistas follows the developments of this internal governance crisis that directly affects the teams’ planning for the remainder of the 2026 season.
Movimentações of John Textor and impact on multiclub management
The businessman John Textor has management functions that allow transit between the accounts of the different headquarters of Eagle Bidco. Lyon maintains that the guarantees given on its behalf served to support the operating cash flows and debts of Botafogo and also Molenbeek, Bélgica. The strategy of using a healthy club as a guarantor for another in operational difficulties is the central point of the French advisors’ questioning. The published balance sheet reinforces that transparency regarding these endorsements is vital for the fiscal health of the company listed on the stock exchange.
The obligations assumed by Botafogo towards financial institutions depended, in many cases, on the strength of the group’s European balance sheet. With the discovery of these retroactive guarantees, Lyon needed to adjust its 2024 and 2025 numbers to reflect the contingent liability. Eagle Football has not yet officially commented on changes to the command structure following the leak of this information. The financial market awaits a clear position from Textor on how it intends to resolve debts between related parties without harming sporting competitiveness.
