GENEVA — Botafogo, the South American champions owned by American businessman John Textor, took their case to the highest court in sports on Wednesday, disputing a $21 million transfer fee owed to Major League Soccer club Atlanta United.
The Brazilian team is appealing FIFA’s ruling that requires them to pay the complete amount for the signing of Thiago Almada, an Argentine forward and 2022 World Cup champion, after failing to pay the first two installments last year.
The Court of Arbitration for Sport confirmed that they heard Botafogo’s appeal against FIFA and Atlanta United on Wednesday. No timeline has been provided for a decision from the court in Lausanne, Switzerland.
According to FIFA’s published verdict, Botafogo requested additional time to “sort it out” after receiving Atlanta’s initial inquiry regarding an overdue payment.
Almada, a 24-year-old forward, made a substitute appearance for Argentina during the 2022 World Cup.
He currently plays for Atlético Madrid, marking his fourth club in less than 13 months, including two clubs owned by Textor.
As a designated player, Almada was part of the Atlanta team that made a record-setting $21 million transfer to Botafogo last June, according to FIFA’s documentation.
After representing Argentina at the 2024 Paris Olympics, Almada joined Botafogo and contributed to their victory in the prestigious Copa Libertadores.
FIFA’s judgment indicated that Botafogo was supposed to make payments of $3 million to Atlanta in July and September of the previous year, with the full amount due by September 2026. The first two payments were not made, prompting MLS to send default notices to Textor’s club.
As of February, the outstanding amount of $6 million “remained unpaid,” according to FIFA’s ruling, which also imposed a larger penalty on Botafogo due to “previous sanctions” by the global football governing body.
FIFA noted that repeat offenses would result in a more substantial penalty and imposed a $150,000 fine along with $25,000 in legal costs on Botafogo.
Additionally, FIFA set a 45-day deadline for Textor’s club to settle its debts, or else face a ban on registering new players. The sanctions are contingent on the outcome of Botafogo’s appeal to CAS.
In January, shortly after Botafogo’s Copa Libertadores win, Almada was loaned to Lyon — another club owned by Textor — for the remainder of the season.
Lyon faced threats of relegation from Ligue 1 due to financial instability and ultimately finished sixth, earning a spot in this season’s Europa League.
This situation has led to concerns for Crystal Palace, the English FA Cup winners, where Textor was a minority owner last season. They were demoted to the third-tier Conference League because of UEFA’s regulations on club ownership conflicts. Crystal Palace’s appeal to overturn the demotion was unsuccessful at CAS.