💸 How a loan squeezes finances and affects Botafogo's control

In partnership with

OneFootball

·1 Mei 2026

💸 How a loan squeezes finances and affects Botafogo's control

Amid severe financial and corporate turmoil, Botafogo’s SAF resorted to a “last-resort” loan from GDA Luma in February 2026.

The main goal was to settle urgent outstanding issues, such as the transfer ban caused by the delay in payment for Thiago Almada.

Video OneFootball

However, according to reporting by ge, the contract imposed severe constraints on the club.

The Globo Group website reported that the debt drastically limits Botafogo’s control over its own revenues and puts the SAF’s shares at risk.

GDA Luma has also already registered itself as an interested party in the judicial reorganization process and is one of the candidates to take control of the club after John Textor’s removal.

Attached guarantees

The agreement stipulates that all present and future revenues related to players (both in men’s and women’s football) serve as direct collateral for GDA Luma.

This directly affects ongoing negotiations, such as defender Barboza’s possible move to Palmeiras.

Loss of autonomy: Money from player transfers does not go into the club’s free cash flow. It is directed to a linked account structure (lock-box), controlled exclusively in favor of the creditor to repay the debt.
Shielding against Judicial Reorganization: The contract contains a clause preventing squad revenues from being considered part of the SAF’s assets in the event of insolvency or bankruptcy. In practice, GDA can collect this money outside the judicial reorganization proceedings.

SAF shares

As an additional form of protection, GDA Luma required substantial corporate guarantees from the “relevant shareholders” involved in the transaction (Eagle Bidco, Eagle Football Holdings, and John Textor).

The conditions established were:

Second-ranking pledge over SAF Botafogo shares owned by Eagle Bidco.
Third-ranking pledge over all of Textor’s shares in Eagle Football Holdings.

Note: GDA Luma is second in line to enforce these shares, since Ares has priority.

Debt explosion

The original loan signed by Botafogo was for US$25 million (around R$124.2 million), with net proceeds of US$22.8 million after fees were deducted.

According to ge, however, the payment was structured based on a Minimum Multiple on Invested Capital (MOIC).

The major problem arose when SAF Botafogo filed for the precautionary measure preceding judicial reorganization.

Under the contract, this constituted a serious breach of the agreement (uncured event of default), triggering drastic punitive mechanisms:

The debt immediately doubled, jumping to US$55 million (approximately R$273.3 million), guaranteeing GDA the right to 200% of the amount lent.
From the start of the proceedings, that amount becomes subject to a hefty monthly interest rate of 20%.

Browser ini tidak didukung, silakan gunakan browser lain atau instal aplikasi