The crisis involving Botafogo and MLS says less about a specific Brazilian club and much more about how the North American league operates when it feels its financial authority has been challenged. The ruling ordering the payment of 21 million dollars and the transfer ban imposed shortly after are not just sporting sanctions, they’re an institutional message. MLS doesn’t negotiate like European or South American clubs. It acts as a bloc, protects its own ecosystem and moves quickly when it believes the system has been strained.
More than a month after the FIFA decision, the situation remains deadlocked because Botafogo’s initial proposal simply doesn’t align with the league’s logic. Long-term installment plans, even if common in other markets, are viewed by MLS as a systemic risk. Every dollar that comes in or fails to come in affects all franchises, which is why the negotiation doesn’t involve just a creditor and a debtor. There are representatives from the league, from Atlanta United and a council made up of members from other clubs.
MLS doesn’t negotiate like a club, it negotiates like a league
This point often goes unnoticed outside the United States. MLS doesn’t accept deals that stretch debts over several years because that directly interferes with budgets, the salary cap and collective planning. That’s why the two options on the table are straightforward and tough, full payment up front or half paid immediately with the remaining 50 percent settled within a maximum of one year. There is no third option.
In this context, rejecting a long-term payment plan isn’t punitive, it’s simply consistent with the model. The league sees itself as a single entity, not a loose confederation of independent clubs. When Atlanta takes the case to FIFA, it’s MLS speaking. When payment is demanded, it’s demanded on behalf of everyone. For American fans, that feels natural. For those coming from outside, it often comes across as inflexible.
Almada became the center of a larger dispute
The specific case involving the Thiago Almada transfer highlighted this cultural gap even further. The disagreement over payment timelines, the 10 percent owed to the player under league rules and the solution found with Eagle purchasing that credit show how the deal became overly complex for an environment that values contractual simplicity. The fact that Botafogo is pursuing that percentage in U.S. courts while MLS seeks full payment through FIFA created a legal short circuit the league has no interest in managing. From MLS’s perspective, an outstanding obligation is an outstanding obligation, regardless of the forum.
The episode sends a clear warning to foreign clubs doing business with MLS. Understanding the regulations isn’t enough, you also have to understand the culture. The league is willing to sell, to negotiate and to talk, but it enforces its terms. Anyone entering this market without aligning expectations ends up facing not just a club, but an entire system.