Botafogo faces legal impasse in Rio and negotiates debt of almost R$200 million with MLS
A decision by the Rio de Janeiro Court ordered FIFA to notify SAF Botafogo of its inability to honor payments on its debts related to the so-called “transfer ban”. Concomitantly with this legal movement, the Rio club began conversations with Major League Soccer (MLS) in the search for an understanding to settle the amount owed.
Among the club’s main creditors, MLS has the largest amount to receive, totaling R$191,949,717.50. It is important to highlight that the document issued by the Rio de Janeiro Court does not guarantee the automatic revocation of any sporting sanctions applied by FIFA. The final deliberation will come after football’s highest entity is formally communicated. However, in similar recent precedents, FIFA has removed sanctions imposed after Judicial Recovery requests, although maintaining older penalties.
While awaiting financial support from GDA, the company with which it signed a binding agreement to be the future owner of SAF, Botafogo is moving forward in negotiations with MLS. These negotiations are led by Eduardo Iglesias, the recently appointed director of the SAF, assisted by two lawyers, one of whom is of American nationality.
The conversations involve both the creditor clubs — Atlanta United and New York City — and MLS itself. The league actively participates as it is considered a unified entity within its franchise model. This means that, in cases of debts arising from transfers, it is MLS who speaks out against the debtor club, demanding that Botafogo resolve directly with the league the amounts to be paid to the teams.
The amount in question refers to financial commitments for the acquisitions of players Thiago Almada and Santi Rodríguez, in addition to fees, fines and interest provided for in the respective contracts. The outlook for reaching an agreement is still not seen as simple. The alternatives under discussion include payment in cash or in installments. Internally, in MLS, the feasibility of a new installment plan is considered remote, especially due to the history of previous delays that caused wear and tear.
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The case involving Thiago Almada is, to date, the most complex. This was the first “transfer ban” imposed on Botafogo, on December 30th. After months of dialogue, an agreement was reached and the first installment was paid on February 6th. However, the following installments were not paid by the club.
Initially, Atlanta United had reached an agreement directly with John Textor and chose not to sue FIFA. However, in May, the North American club formalized the notification to the entity. The current situation makes negotiations more challenging, as failure to comply with the initial agreement generated dissatisfaction at Atlanta United, which is now, behind the scenes, pressing for immediate and full payment of the amount.
The scenario with New York City is a little more favorable. Currently, there is the possibility of paying the debt in installments. Hiring Santi Rodríguez, at the time, represented a cost of US$15 million. Ge investigations indicate that Marcelo Claure, a Bolivian businessman who owns 10% of the American club’s shares, has collaborated in the negotiations. He is also a partner of Gabriel de Alba, a central figure in the GDA.
This negotiation with MLS is considered one of Botafogo’s biggest current priorities, having been established as a mission since Eduardo Iglesias assumed the position of CEO. Sources close to the day-to-day activities of the SAF guarantee the director’s commitment to resolving the issue. Closing this agreement is vital to release planning for the second half of the year and begin a process of recovering Botafogo’s credibility on the international football scene.
