Leeds United lose appeal over Jean-Kevin Augustin as Court explains decision

The Court of Arbitration for Sport issued its decision on Friday morning which has left Leeds facing a bill of 21m euros to Augustin’s former club RB Leipzig. Leeds are now looking at their legal options but CAS say the first instalment of 6.7m euros must now be paid to the German side. Leeds United quickly released a statement following the decision which read: “Leeds United are surprised and disappointed by the Court of Arbitration for Sport’s decision, which not only contradicts the language and meaning of the contract but also the practices adopted in European football under FIFA regulations, due to the unique impact of the extensions to the season necessitated by Covid postponements. The club will now review carefully all of its legal options with a view to an immediate appeal. We will make no further comment at this time.”

The statement released by The Court of Arbitration for Sport on Friday morning read: “Lausanne, 4 November 2022 - The Court of Arbitration for Sport (CAS) has issued its decision today in the arbitration procedure between Leeds United Football Club (LUFC) and RasenBallsport Leipzig GmbH (RB Leipzig) concerning the decision issued on 1 June 2021 by the Single Judge of the Players’ Status Committee of the Fédération Internationale de Football Association (FIFA) (the Challenged Decision) which upheld RB Leipzig’s claim to be paid a transfer fee by LUFC in accordance with the “Purchase Obligation” included in the loan agreement concluded between the clubs and the player JeanKévin Augustin (the Player).

“The CAS Panel in charge of the matter has dismissed the appeal filed by LUFC and confirmed the Challenged Decision in its entirety, including the obligation of LUFC to pay to RB Leipzig the first instalment of the transfer fee, i.e. EUR 6’740’174.

“On 25 January 2020, RB Leipzig, LUFC and the Player concluded a loan agreement in which they agreed that the Player would be transferred temporarily from RB Leipzig to LUFC until 30 June 2020. The Loan Agreement included a “Purchase Obligation” whereby the Player could be permanently transferred from RB Leipzig to LUFC for a transfer fee of EUR 21 million, to be paid in three instalments, if LUFC was promoted to the Premier League at the end of the 2019/20 English Football League season.

"On 13 March 2020, the English Football League was suspended due to the outbreak of the COVID-19 pandemic and it is disputed between the parties whether the “Purchase Obligation” was triggered. In the Challenged Decision, RB Leipzig’s claim to the transfer fee on the basis that the “Purchase Obligation” had been triggered was upheld by the Single Judge of the FIFA Players’ Status Committee and LUFC was ordered to pay the first instalment of EUR 6’740’174 (EUR 7 million, less EUR 259’826 as solidarity contribution).

“In August 2021, LUFC filed an appeal at the CAS seeking the annulment of the Challenged Decision and a declaration that RB Leipzig had no entitlement to a transfer fee in connection with the Player. Following an exchange of written submissions, the CAS Panel held a hearing with the parties on 15 March 2022. Further to its deliberations, the Panel held that the Purchase Obligation had been triggered at the end of the 2019-2020 season, even though the season had concluded later than expected due to the disruption caused by the outbreak of the COVID-19 pandemic, and confirmed the Challenged

“Decision in full, including the obligation of LUFC to pay to RB Leipzig the first instalment of the transfer fee, the two other instalments being not due yet, at the time of the FIFA procedure."