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Botafogo's financial crisis deepens after FIFA transfer ban and Lyon legal battle

From champions to crisis: Botafogo's glory in 2024 now overshadowed by debt, a FIFA ban, and a bitter legal fight with Lyon. Can they survive the fallout?

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2 min read
The image shows a poster with text and a logo that reads "When companies sneak hidden junk fees...
The image shows a poster with text and a logo that reads "When companies sneak hidden junk fees into families' bills, it can take hundreds of dollars a month out of their pockets."

Botafogo, the reigning Brazilian league and Copa Libertadores champion, is facing a deep financial crisis. The club was hit with a FIFA transfer ban on 31 December 2025, blocking all player sales and signings. Now, its owner, John Textor, is taking legal action against Olympique Lyonnais (OL) to recover millions in alleged unpaid debts.

The dispute centres on two controversial transfers from July 2024 that were never officially registered with France's football authorities. The trouble began in mid-2024 when Botafogo reportedly sent forwards Luiz Henrique and Igor Jesus to Lyon in deals worth around €20 million combined. However, neither transfer was ever logged with the Ligue de Football Professionnel (LFP), France's league governing body. Textor claims Botafogo later used its own funds to cover Lyon's financial shortfalls, effectively bailing out the French club.

By June 2025, Textor had lost operational control of Lyon after investment firm Ares Management took over. Then, in late January 2026, he was removed as director of Eagle Football—the holding company that owns both Botafogo and Lyon. The group now faces its own collapse, weighed down by Lyon's mounting debts.

FIFA's transfer ban, imposed at the end of 2025, has left Botafogo unable to trade players, worsening its cash-flow problems. With no way to generate revenue from transfers, the club is now pursuing legal action against Lyon. The lawsuit aims to recover what Textor describes as misappropriated funds from the disputed 2024 deals.

The financial strain comes just months after Botafogo's historic 2024 season, where the Rio de Janeiro side won both the Brasileirão and the Copa Libertadores. Yet off the pitch, the club's future looks increasingly uncertain as debts pile up and legal battles loom. Botafogo's lawsuit against Lyon will determine whether the club can reclaim the alleged debts tied to the unregistered transfers. If unsuccessful, the Brazilian side may struggle to meet financial obligations while under FIFA's ban. Meanwhile, Eagle Football's instability raises further questions about the long-term ownership of both clubs.

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