John Textor being taken to court over €82m Lyon investment while American investor demands Brazilian court freeze €23m in Botafogo shares

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 L'Equipe, 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.

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.

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.

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.