A fresh legal twist in the dispute for control of Botafogo’s SAF (Sociedade Anônima do Futebol) on Monday sparked a jurisdictional conflict that, according to sources consulted by CNN Brasil, could land the case before the Superior Court of Justice (STJ) in Brasília.
The latest ruling from the Getulio Vargas Foundation (FGV) Arbitration Tribunal ordered that Eagle Bidco Holding—which holds 90% of shares and is managed by the British group Cork Gully—regain its political rights within the Rio club’s SAF. As a result, John Textor would remain sidelined from the club’s administration, a status already in place since late April. However, the decision also deemed illegal the election of Durcesio Mello, an ally of the American businessman and former Botafogo president, as the new head of the SAF.
The FGV’s Mediation and Arbitration Chamber was designated by the Rio de Janeiro court on March 25 to resolve the conflict between Textor and Eagle Holding. The complication arises because Durcesio Mello continues in his role as general director of the SAF, following a ruling issued on April 28 by the 2nd Business Court of the Rio de Janeiro State Court.
In his decision, Judge Marcelo Mondego de Carvalho Lima suspended Eagle Bidco’s voting rights and upheld Mello’s election as SAF administrator. Conversely, the FGV Arbitration Tribunal considers both the appointment of Textor’s ally to the general directorship and the suspension of Eagle Bidco’s voting rights to be illegal. The tribunal states that “any controversy regarding shareholder acts and rights arising from the Articles of Association and applicable rules falls under its exclusive jurisdiction.”
Thus, the FGV tribunal acknowledges a jurisdictional conflict concerning Eagle Bidco’s voting rights, and the matter will be referred to the STJ for judgment. Until then, the Rio de Janeiro State Court’s ruling remains in effect, keeping Durcesio Mello in charge of decisions regarding Botafogo’s SAF.
