Botafogo to sue Lyon in bid to recoup 125-mn-euro debt

According to Botafogo, owned by John Textor, the complaint concerns the loan of several players to Lyon when US businessman Textor was in charge of both clubs, as well as payments linked to alleged phantom transfers.

Textor was replaced as Lyon president last June by Michele Kang and then removed from all operational roles within Eagle Bidco, the club’s majority shareholder, at the end of January. The Eagle group also owns Botafogo and Belgian side Molenbeek.

“Botafogo filed lawsuits against Olympique Lyonnais in court due to debts exceeding 745 million reais,” or 125 million euros, the Brazilian club wrote in a statement.

Lyon are currently fourth in Ligue 1 and contending for a Champions League spot. They won an appeal last year against relegation on financial grounds to the second division.

“Eagle Football acquired Olympique Lyonnais in a state of insolvency at the end of 2022,” it said, pointing out the club at the time was at risk of being heavily sanctioned by French football’s financial watchdog.

Botafogo explained it made “financial contributions in the form of loans, with the clear expectation of repayment” and blasted the “unilateral” termination by Kang of an agreement between the two clubs.

Botafogo won the Copa Libertadores and Brazilian league title in 2024 but have run into financial difficulties.

The club was banned by FIFA from signing players in December for a debt relating to the signing of Argentina international Thiago Almada from MLS side Atlanta United. The ban was lifted in February after the clubs reached a settlement.