In a decision issued this Monday, the Arbitral Tribunal of the Getúlio Vargas Foundation (FGV) reinstated the voting rights of Eagle Bidco, which owns 90% of Botafogo’s SAF, and deemed Durcesio Mello’s takeover of the SAF as irregular.
The tribunal stated that Mello’s appointment to manage the SAF occurred before a judicial decision on the matter, without prior communication to the Arbitral Tribunal. This constitutes a violation of the Procedural Order terms of the arbitration.
— Due to the illegality of the election, the removal of Mr. Durcesio de Mello is therefore a logical consequence (the Arbitral Tribunal notes it is not analyzing the judicial decision that later appointed him on April 28, 2026). The disregard for the orders of this Arbitral Tribunal constitutes bad faith litigation. Its consequences will be applied in due course by the Arbitral Tribunal, according to Article 27 of Law No. 9.307/1996 and item 11.28 of the Arbitration Agreement.
However, Durcesio Mello remains in his position as General Director of the SAF, based on a decision by the 2nd Business Court of the Capital District of the Rio de Janeiro State Court of Justice, published on April 28.
The Arbitral Tribunal concluded there is a positive conflict of jurisdiction regarding Eagle Bidco’s voting rights, which must be referred to the Superior Court of Justice for judgment. On April 28, a decision by Judge Marcelo Mondego de Carvalho Lima of the 2nd Business Court had removed Bidco’s voting rights.
For the FGV Arbitral Tribunal, the 2nd Business Court encroached on its jurisdiction concerning Eagle Bidco’s voting rights. The tribunal “understands that any controversy related to the acts and rights of shareholders arising from the Bylaws and applicable regulations falls under its exclusive jurisdiction.”
John Textor, who had been removed from the SAF, now faces an even more difficult path to return. The Arbitral Tribunal partially revoked the pre-arbitration judicial decision that had kept the American in his statutory position. Textor is no longer shielded from operational changes.
Textor’s removal was ordered on April 23 by the Arbitral Tribunal. According to the three arbitrators of the FGV tribunal, recent actions by the American “have the potential to cause irreparable harm to shareholders and the entire Botafogo fan community.” Therefore, they decided to immediately remove the American, responding to a request from Eagle Bidco.
Botafogo has an Extraordinary General Meeting scheduled for May 14, Thursday. The first call will be at 11:00 AM (Brasília time). The second call, with any quorum, will be on May 19.