Welcome John. Thank you so much for being here with us. >> And uh so we'd like to start asking you if you have any updates on the current contribution and the transfer ban situation with Bafugu.
>> Uh terrific. Uh first of all, thank you uh for having me here in the podcast studio. This is the night of our first game in the the main championship season.
So, I'm very excited to see the fans tonight. Um, we have a uh an aggressive coach with some great ideas. Uh, we have great players.
We're going to be building on that. So, first of all, I'm excited to be here and see uh see everybody. Um, regarding the capital that I talked about recently, um, I have uh two partners.
Um yes, one of them is GDA Luma Capital. Um the other is Hutton Capital and uh Hutton backed me uh many years ago when we bought a technology company together. Uh it was an amazing success and so we're great friends.
We've had success together. I know them very well. Um GDA Luma is many things.
Uh they're a lender, they're an equity investor. Um the principal behind this organization uh is Gabriel de Alba, very respected within the uh global Hispanic community, the chairman of the very popular Cirus Sole. Um so I'm excited that they've stepped up.
We have a number of other investors whose names have not gotten out into the press. And the project started by approaching Aries and trying to find a terrific and peaceful way to treat them very well and to end the relationship uh between Aries and Eagle uh so that we can really get back to the better parts of the collaboration that we had across our clubs which brought us a championship. As far as the financing I talked about, um 50 million US dollars of capital coming in just to help with working capital.
Uh there's also part of the financing which is to purchase the interest from Aries. Um and that does put Hutton and and GD Luma in as sort of the new lenders to Eagle. Um the intention is not for them to be lenders to Bafogo but they would be both equity holders and lenders at Eagle and they're very excited to be here to come to games.
Uh I think everybody knows Aries is a big organization. They've never been to a game here in Brazil. They've never been to the offices.
Never really experienced the passion of our project. Uh but now we're talking about two guys in particular that are very dialed into what we're doing and very excited about it. Um I think there was a short-term feature of this deal that was intended to be uh in a way very harsh.
Um and it's a structure that creates a lot of pressure on Aries to finish the bigger deal. Um, it is a distressed situation where they're coming in to to provide funds when the lender wouldn't, when other shareholders wouldn't, and a situation where we're owed money from our French club. Uh, and Aries is preventing that French club from paying us.
Um, so the structure was designed to be tough such that this new group would be assured of becoming co-owners with me and the social club here in Brazil. When small terms leak out and they sound horrible, uh, it was designed to be helpful to all of us. Um, but the press runs with it.
Maybe somebody internally doesn't like it. The social club doesn't understand it. Um, and that's what led the social club to go to the court because they didn't understand what we were trying to do.
Um, it's understandable because things have been moving so fast. I'm at war with Aries uh in France. Uh, we've gone public with some very bad things that they did there.
Uh, and we've reported that to public prosecutors and to the market regulators there. We're releasing all that information to the press today across Europe. But my battle with Aries abroad definitely creates pressure on me here because they know this is the club that I truly love.
So, anything you read of them trying to kick me out or take control, uh it's because they're trying to pressure um me in some way because they know this is what I love the most. On that point, I am still uh the chairman of Eagle Football Holdings. Uh every one of the members of the board of Eagle Football Holdings is a close partner of mine.
It's complicated, but that entity is also the parent company for two sublevel companies. I'm the only director of Eagle Football Holdings Midco, which is the sole shareholder, the only shareholder of Eagle Football Holdings Bidco. And I'm still the only director of Eagle Football Holdings Bidco.
Aries did send a letter out to the world saying they were replacing me with two directors. Well, those two directors have already notified the UK authorities that that was not with their permission. Uh that they believe they were appropriately terminated.
I'm friendly with them. It was done just to reestablish control. There's nothing against them personally.
Uh but they've notified the UK government that they're no longer directors and they did not agree to replace me on the board. You can go to the uh UK government website and you'll see I'm still the only director of Eagle Football Holdings Bidco. Um so that battle will continue but that affects Eagle.
Um here there's a court order in place that protects all of us. I'm still the leader of Safogo. Um I still am partners with the social club.
We don't always understand each other, but that's because the world often moves too fast to keep everybody updated. I'm very much looking forward to getting together uh with the president of the club, JP, before the game and a number of uh key uh uh people in the social club and we're going to talk about all this so they'll much better understand that the press accounts of what we were doing are not correct. Um, the only player sales we would like to do right now are those that are typical in our business model that are advantageous.
Um, and we have a couple days left in the transfer window to sell players into Europe and then we've got a good long time to buy players in. Uh, regarding the transfer ban, um, yes, it was my intent to have all of the internal approvals done by now. I wanted to announce that we were finished with this before the game >> because things were getting slow with some of the institutions and the discussions with Aries.
Uh I told the social club that I'm making a personal investment equal to the amount we need to pay Atlanta United to clear the transfer bin. Um and I was certainly hoping to announce that before the game tonight. Um I think I'll probably have it worked out with the social club u because I need approvals from them.
Um, so I think I'll work it out with a social club maybe before the game or in the day or two after the game. Uh, but I'm very comfortable I'm going to personally fund the payment to Atlanta United to end the transfer ban. Um, that allows us to grab some of those terrific players that we've been hearing about that we'd like to bring to the squad.
Um, you know, I'm sorry when I make these announcements that something's approved at Eagle Bidco. I still then have to come down and meet with a social club and then get them to approve it. So now it's between Safogo and uh Boto Football Regatas.
Um sorry I put too many E's in there. Um so I think we'll get it done. Social club loves this club.
Um they see all the noise. They're confused by it. The fight with me and Aries, but I believe the social club is is on our side, not on the side of our lender.
So I don't have any fear uh about the relationship with the social club. You just have to start communicating better and that's uh that's on me. First of all, the story regarding Danilo and Montoro uh I can tell you that got to the press as quickly as it got to my phone.
I did receive an offer. Um, of course it concerns me that these stories move into the press so negatively um, leaked from within a very large organization by somebody that uh, enjoys creating uh, division in the fan base. And um, the idea that we would let those players leave during this transfer window, it's absolutely not true.
I will not sign a deal that allows them to go out now. That's true of any one of our top core players. Um, when you start talking about future windows, you're talking about the future.
Uh, you don't know what happens in the future. Uh, we've got a big window coming, a big break, the World Cup. It's going to change everything.
Uh, we'll see how these players develop over that period of time, but we're going to hold everybody in this window. Uh we do have uh one offer uh that is asking to buy those players now and loan them back to us so they stay with us. Um and so I'm curious to know in that offer well how long can we get that commitment to keep them here developing winning championships.
Um I can also say in in the situation of uh Montoro certainly we would look to own a significant percentage of him uh even after he leaves the club. Um but these are just offers coming in and they should not be pushed into the press and I'm having to answer questions about things that we're just now considering. Um, I do think any offer at a good valuation, which is substantially more than we paid, that allows us to keep the player here at the club, playing for the club, uh, the same way, you know, it happened with Endrich or happened with Estavau.
These are good situations, and we're always open-minded to those situations, but none of these guys are leaving this window. So, uh, going on since you touched on the social club, I'd like to know more on the ruling on the court ruling today that, uh, limits, uh, player negotiations for Baf Fogu. How do you see that and what's are the next steps we're taking?
>> Well, it's an extension of something that was decided by the judge before um, where we had to communicate what we were doing with the social club and we've been doing that. uh we don't do it in advance of a deal being completed because confidentiality is very hard to maintain and uh the loss of confidentiality makes the negotiations very difficult. So we've been complying with that after the fact and the social club has been fine with that.
Um with all the noise that the social club has been hearing, they thought, well maybe something's happening they don't know. So they went in, they filed this petition and the judge is basically specifically asking me to come before him and be clear about what I've done or what I'm planning and I'm very happy to do that. Um these incredibly uh difficult financing transactions that people have been reading about, that's not happening here.
uh as I said every transaction we're considering with uh GDA or with Hutton is designed to bring us into ownership fully of Bafogo uh and to separate that from uh the original sort of Eagle structure uh and it's it's to include a number of the Eagle common shareholders as well. So, it's complicated and um I think that's why there was a miscommunication, but I do plan to go back in front of the judge immediately. Um tell him what we're doing.
It is important that we resume normal player trading. Uh we have to bring players in. We have to sell some players.
That's the nature of our business. Uh I don't believe the court wants to stay in the way of that. They just want me to come and provide asurances that we're complying with the information requirement between us and the social club and I think everybody I think everything will be fine.
>> So just uh to dot the eyes. So what's the current situation with uh Aries and Eagle Football Holdings? Are you in charge of Eagle?
>> Yes, I'm the majority shareholder and I control the board at Eagle Football Holdings. Uh there is a subsidiary company called Eagle Football Holdings Bidco. Aries and I are definitely wrestling for control of that entity.
Um I'm the only director of that entity. The two directors they wanted to replace me have both gone public and made it clear they did not agree to do so. They're friendly with me.
Uh and so that fight will continue. It does not affect POGO and it is it's a developing situation in France because I think Aries uh made some missteps and trying to take too much control of that football club and we're now releasing information to the press on exactly what they did wrong. It's clear they violated certain French laws.
I think they should worry not so much about me. Um, but they're going to have some disclosure requirements to better explain what they've done in France. Um, I'm trying to stay positive with them.
I'm bringing solutions and capital to treat them well. Um, but when you're in the middle of that kind of negotiation and you're talking about $500 million, there's some legal maneuvering and some wrestling and some leverage. And this is what happens.
It creates a lot of noise. It's unfortunate. I can tell you they don't care about Brazil and Boto.
they haven't been here. They haven't watched the games. Uh they would very much like a divorce where, you know, I keep uh my interest in Boto and they keep their interest in France.
I don't think that's fair to the shareholders of Eagle Football who own a lot of value in France as well. But so what you're seeing is a lot of noise and a lot of wrestling. Uh you can go on the government website in France and see that I'm still the only director of Eagle Football Holdings, Bidco.
It was true yesterday, it's true today. >> Perfect. Thank you so much.
>> Thank you.
