Rio de Janeiro – The future of Botafogo remains uncertain as American investment firm Ares Management engages in discussions with both John Textor and representatives of Botafogo Social, the club’s social members, amidst a deepening ownership dispute. The situation, which centers around Eagle Football Holdings – the parent company of Botafogo – is further complicated by ongoing legal battles and investigations in France, according to reporting from Brazilian journalist Bernardo Gentile of “Arena Alvinegra” on Thursday.
Ares, a significant creditor to Eagle Football, holds considerable sway over the multi-club group, which also includes Olympique Lyon and RWD Molenbeek. The firm initially provided over €400 million to finance the acquisition of Lyon in 2022, but Textor has reportedly struggled to meet repayment obligations. This financial strain has led to a power struggle, with Ares seeking to recoup at least another €200 million in outstanding loans.
The core of the conflict revolves around control of Eagle Football Holdings Bidco, the entity that holds the shares and legal rights across the group. According to a statement released on February 24, 2026, John Textor, as the sole director of the sole shareholder of Eagle Football Holdings Bidco Limited, disputes any appointment by Ares Capital Corp to the Board of Directors of Eagle Bidco. This dispute is playing out publicly through filings at Companies House in the United Kingdom, which Textor claims are being “manipulated by competing interests.”
The situation escalated earlier this year, with Textor removed as a director of Eagle Football Holdings on January 27, hours before a general meeting of Olympique Lyon. Ares drove this director change, aiming to weaken Textor’s control over the clubs. However, Textor is contesting his removal, arguing that Ares is attempting to “disenfranchise the shareholder rights of the Eagle Group companies.”
Adding another layer of complexity, both Ares and other shareholders within Eagle Football are currently under investigation by the French government, alongside legal proceedings initiated by Textor himself. Gentile reported that this multifaceted legal landscape is prompting Ares to explore potential agreements with all parties involved to resolve the situation. The firm appears to be weighing its options, potentially awaiting a judicial decision before committing to a specific course of action.
Botafogo Social, representing the club’s membership base, is also actively seeking to remove Textor from his position within the Sociedade Anônima de Futebol (SAF) – the club’s football business entity. This move underscores the growing dissatisfaction among club members with Textor’s leadership and the financial difficulties plaguing the organization. The club’s Brazilian league play has been impacted by financial issues, including a FIFA transfer ban imposed due to an unpaid transfer fee to Atlanta United and a subsequent court order prohibiting player trading or asset sales without board approval.
Gentile emphasized that Ares is not solely focused on negotiations with Textor. The firm is simultaneously engaged in discussions with Botafogo Social, assessing which scenario best serves its interests. This suggests that Ares is open to various outcomes, including potential agreements that could favor either Textor or the social members.
Eagle Football Group reported a net loss of €200 million for the financial year ended June 30, 2025, according to Bloomberg, further highlighting the financial challenges facing the group. The sale of Eagle’s minority stake in Crystal Palace to Woody Johnson last summer provided a temporary reprieve, with approximately €200 million returned to Ares, but the outstanding debt remains substantial.
The situation at Eagle Football is a stark reminder of the risks associated with multi-club ownership models and the complexities of international football finance. Ares’ position as a major creditor gives it significant leverage, but navigating the legal and political challenges in multiple countries will be crucial to resolving the dispute and securing its investment. The firm’s ultimate decision will likely have a profound impact on the future of Botafogo, Olympique Lyon, and the broader Eagle Football network.
As of March 26, 2026, the outcome of these negotiations remains unclear. The next key development is expected to be a ruling from the French authorities regarding the ongoing investigations, which could significantly influence Ares’ strategy. Fans and stakeholders will be closely watching for further updates as this complex saga unfolds.
Archysport will continue to monitor this developing story and provide updates as they grow available.
