Atlanta United probably will receive most of the $30 million that it is owed by Botafogo for the transfer of Thiago Almada, according to an Atlanta-based attorney well-versed in contract law.
And the MLS club does have one last recourse in civil court against the Brazilian club to pursue the entirety of the fees owed, according to Robert D. Adamson Jr., an attorney whose experience includes international contract law and who owns a firm in Marietta.
Atlanta United is owed the substantial sum because of the sale of Almada for $21 million, announced July 6, 2024. Almost 18 months and several international court appearances later, the Five Stripes have yet to receive the funds from Botafogo, which is owned by American John Textor.
In addition to the $21 million, there is $1.5 million in interest payments, $4 million from incentives reached by Almada while with Botafogo, and another $5 million from the reported $29 million Botafogo received from selling Almada to Atletico Madrid in Spain last summer.
After FIFA ruled in Atlanta United’s favor early last year, Botafogo appealed the ruling to the Court of Arbitration for Sport in October. It lost that appeal in December. Botafogo can’t appeal the Switzerland-based court’s decision.
FIFA followed in late December by banning Botafogo from buying players during the next three transfer windows. One window recently opened.
“What Botafogo is doing is calculated,” said Adamson, who played soccer at Mercer and graduated from its law school. “Let’s be clear about that. What they’re doing is strategic. Now they’re certainly hurting their reputational within the soccer community. They have certainly weaponized the legal procedural process, and that’s one that takes time to play out.”
Atlanta United declined several chances to comment on the ruling or what actions it may take should Botafogo continue not to pay.
Adamson said it’s not uncommon for a buying team to delay paying a selling team and go the FIFA/CAS route. He said it is very uncommon — in fact, he couldn’t think of another example — for a buying team not to pay a selling team.
Adamson said there would be no boilerplate language within the transfer contract that would result in Botafogo believing there would be a legal reason it could avoid paying.
Atlanta United has two recourses.
The club can wait until the “very real pressure,” as Adamson described, from the transfer ban forces Textor and Botafogo to pay, or it can use the FIFA and CAS rulings as evidence and sue Botafogo in a Brazilian court for civil damages.
Adamson said the upside of that action is that it has “true, true teeth.” Brazil does recognize CAS verdicts, Adamson said.
The downside is even if the Brazilian court rules in Atlanta United’s favor, there is still the issue of collection. Suing Botafogo in a Brazilian court would also result in expenses related to hiring an international law firm, etc. The process could also last more than a year.
Adamson said, based upon his experience, which includes a master’s in international commercial law from New York University, Botafogo will pay the $22.5 million in the next few weeks, which should result in the lifting of the transfer ban.
“I think it makes sense for Atlanta United to see what happens during this transfer window,” Adamson said.
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