October 28: John Textor’s hold on Botafogo has effectively been reduced to a rounding error after the club’s members’ association increased its stake in the football company to more than 99%.
The change came through a capital increase rather than a conventional buyout, with Botafogo issuing 200 million new Class B shares following an extraordinary general meeting on 24 September.
The association initially subscribed 102 million of them, the same as its current 51% stake, and paid just over one million R$ ($188,000).
Eagle Bidco, the vehicle through which Textor’s Eagle Football structure held its position, had the right to subscribe for the remaining 98 million shares for R$980,000 but chose not to.
After Eagle formally told the club last Thursday that he would not exercise those rights, Botafogo moved three days later to take over the remaining allocation. The result leaves the partnership with 99.18% of the Botafogo Football Company (SAF) and Eagle with 0.82%.
This represents a remarkable investment for an ownership model that, not long ago, had Textor’s firm control of one of Brazil’s biggest clubs.
Under Textor, Botafogo won both Serie A and the Copa Libertadores in 2024. Since then, disputes over funding, governance and ownership have rubbed off on Eagle’s position.
The latest capital increase was not cosmetic either. Botafogo said the new money was needed to bolster cash flow and meet current obligations, including salaries, while the SAF is still mired in judicial recovery.
Eagle’s political rights had already been suspended by a court in Rio de Janeiro, while Textor has continued legal claims over ownership of SAF shares. He has won a US ruling supporting his position and is seeking to have it recognized in Brazil.
Textor has previously accused the association of trying to “steal” control of the club, but the dilution process has meant that his financial stake is now less than 1%.
It also opens a much simpler path for a future sale to Mexican businessman Gabriel de Alba and GDA Luma, who have been linked with a takeover of SAF.
Contact the writer of this story, Harry Ewing, at (email protected)
