John Textor, the American investor behind Eagle Football Holdings, is facing fresh legal trouble as Botafogo, one of his portfolio clubs, launches a lawsuit against Lyon another club previously under his control. The Brazilian side is demanding €65 million from Lyon, citing unpaid transfer fees related to the sales of Luiz Henrique to Zenit, and Igor Jesus and Jair to Nottingham Forest.
Botafogo claims these sales were made to support Lyon’s finances during its crisis with the French football watchdog, the DNCG. Simultaneously, tensions have risen over a €100 million loan Botafogo approved, backed by club assets, to shift holdings to a Cayman Islands company prompting Eagle Football to seek legal intervention in Brazil.
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The situation has escalated into a complex dispute over financial obligations, ownership control, and restructuring efforts. With the Ligue 1 season approaching, the legal entanglement threatens to overshadow Lyon’s preparations and highlights deep fractures within the Eagle Football structure.
Botafogo has confirmed its legal action against Lyon, accusing the French club of failing to honor financial commitments within an inter-club cash pooling agreement facilitated by John Textor’s Eagle Football Group.
The Brazilian side insists it acted in good faith, making financial sacrifices to assist Lyon during regulatory scrutiny in France, and only took corporate restructuring steps such as moving assets offshore to protect itself. Botafogo emphasizes that these measures were not intended to provoke, but rather to prepare for potential external investment if Lyon fails to reimburse owed amounts.
The club also clarified that current authorizations do not dilute Textor’s majority shareholding, but create legal room for further capital if necessary. Textor, who stepped down from his role at Lyon and sold his Crystal Palace stake to avoid UEFA conflicts, now faces growing pressure from both legal fronts and fan unrest. Lyon supporters are left hoping for a quick resolution ahead of the league’s opening day.
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