Under immense financial pressure from legal battles, John Textor faces a British court over an €82 million (£71m/$93m) debt from his Lyon investment.
Textor faces legal action from investment fund IconicAmerican attempts to "freeze" €23m worth of shares in BotafogoPressure mounts after stepping back on his role at LyonFollow GOAL on WhatsApp! 🟢📱WHAT HAPPENED?
Textor's complex financial empire is under scrutiny on multiple fronts. In Brazil, he has asked a Rio court to "freeze" shares in Botafogo worth €23m (£20m/$26m) that are held by his main creditor, Ares. At the same time, a dispute with another investment fund, Iconic, has escalated to a British court. According to , Iconic is seeking to recover approximately €82m (£71m/$93m) they invested in the purchase of Lyon, with the matter now in the hands of the UK legal system after a US court rejected Textor’s appeal.
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Textor’s football ventures have unravelled amid financial scrutiny and legal skirmishes on two continents. After Lyon’s provisional relegation to Ligue 2 – triggered by the DNCG’s findings of missing documents and suspected funds diverted to bolster Botafogo – Textor stepped down from his role at the French club and sold his Crystal Palace stake, which was reportedly bought using the money from Ares and Iconic. Now, with new heads at the helm of Lyon, his alleged 'accounting tricks' are being uncovered and Textor is actively having to fight back against his creditors, seeking to protect his control over Botafogo even as the UK courts prepare to rule on the massive €82m debt to Iconic, which stems from a failed IPO intended to merge Eagle Football with a SPAC.
DID YOU KNOW?
The American investors's legal action in Brazil against Ares – his primary creditor – is a defensive measure aimed at protecting his control of Botafogo, a club that recently made an unprecedented €22m (£19m/$25m) signing of Danilo from Nottingham Forest. The size of this transaction has raised questions about the club's finances, especially since it remains the only club in the league not to have presented its accounts.
AFPWHAT NEXT FOR TEXTOR?
The ex-Lyon owner's priority is to fend off his creditors and consolidate his control over Botafogo. The legal decisions from the British and Brazilian courts will have a profound impact on his ability to do so. A ruling against him in the UK could force him to pay a massive debt, while his success or failure in freezing Ares's shares in Brazil could determine if he can retain management of Botafogo.
