Botafogo files lawsuit against Lyon to recover €125 million in alleged debts
Brazilian club Botafogo has initiated legal proceedings against Olympique Lyonnais, seeking to recover over 745 million Brazilian reais (approximately €125 million) in alleged unpaid debts. The club, which remains under the ownership of former Lyon president John Textor, announced the lawsuit in an official statement on Saturday, confirming the action was filed in court this past Friday. Botafogo claims the debt stems from financial contributions provided as loans, which were not repaid following a breakdown in the collaboration agreement between the two clubs.
According to the club's statement, the dispute originates from what Botafogo describes as a "unilateral" rupture of the partnership agreement by Lyon's current president, Michele Kang. The Brazilian side alleges this occurred amid internal conflicts within the Eagle Football group, the multi-club ownership network that includes both clubs. Botafogo asserts that Lyon benefited from the resources received but failed to meet its subsequent obligations, refusing to pay the debt of 745 million reais to Botafogo and a further 12 million euros to Belgian club RWDM Brussels, which is also part of the Eagle group.
The financial impact of this non-payment, Botafogo claims, has been severe. The club stated it directly compromised their financial planning and affected their ability to renew contracts and recruit players. This situation reportedly led to FIFA imposing a transfer ban on Botafogo in late 2025, a significant sporting sanction that hindered squad building. The legal action represents an escalation of a conflict that has been simmering for months; Textor had publicly threatened legal action against Lyon at the end of March.
The relationship between the two clubs was once a cornerstone of Textor's Eagle Football strategy, designed to foster player development and commercial synergy. Textor acquired a controlling stake in Lyon in 2022 and later added Botafogo to his portfolio. However, after selling his stake in Lyon to Michele Kang and a consortium led by INEOS in late 2025, the collaborative framework appears to have completely collapsed. The lawsuit suggests a bitter fallout between the current Lyon ownership and Textor's remaining football interests.
It remains unclear in which jurisdiction the lawsuit has been filed, as Botafogo's communiqué did not specify this detail. Legal experts suggest the choice of venue could be a critical factor in the case's progression and outcome. For Lyon, the lawsuit presents a significant off-field distraction and a potential financial liability as the club continues its efforts to rebuild under new ownership and return to the upper echelons of French and European football. The case underscores the complex legal and financial entanglements that can arise from multi-club ownership models when partnerships dissolve.
