Botafogo increased borrowings as Textor spreads the cash around

May 7 – Botafogo has borrowed R$333 million ($65.6 million) from American owner John Textor, but not all the cash has remained in the club.

Brazilian media report that Botafogo’s financial accounts reveal that the club agreed the loan with XP Investimentos in 2023 as working capital, and that part of the money was transferred to Belgian club RWD Molenbeek, one of the other clubs in the Eagle Group portfolio. The Rio club also borrowed money from financial institution Money Plus (R$20 million/$4 million) and from Brazilian bank Daycoval (R$16.9 million/$3.3 million).

“The loans were obtained with the aim of providing working capital support to the company, thereby ensuring its ability to operate effectively and meet its financial obligations,” said the accounts.

“The main impact observed resulted from a loan made by SAF Botafogo in collaboration with XP Investimentos, involving the Fiduciary Assignment of Credit Rights to Mr. John Textor. Although this loan was recorded on SAF’s balance sheet, it is crucial to note that the risks linked to this operation are shared between SAF Botafogo and majority shareholder Mr. John Textor.”

Botafogo states that the transaction “does not imply risks for SAF Botafogo, as the amounts involved will be fully guaranteed by the majority shareholder”.

Globo reports that Textor kept R$295.7 million ($58.6 million) of the amount borrowed. Botafogo reported a gross operating revenue of R$388 million ($76.4 million) and a loss of R$101 million ($19.9 million) for 2023 – niot including the loans taken from XP Investimentos.

Textor acquired Botafogo in 2022 as he expanded his club ownership portfolio. Last season, Botafogo came close to winning the league title, but a dramatic slump in form meant the Rio club did not win their first domestic crown since 1995. Since then, Textor has complained that Brazilian club football is riddled with match-fixing.

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Source link : https://www.insideworldfootball.com/2024/05/07/botafogo-increased-borrowings-textor-spreads-cash-around/

Author : Paul Nicholson

Publish date : 2024-05-07 05:12:55

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