Leeds United Football Club is reportedly facing a £24.5 million payment to former player Jean-Kevin Augustin after breaching his contract by failing to sign him permanently. Augustin, a 25-year-old forward, joined the club in January 2020 on loan from RB Leipzig, but only made three appearances for Marcelo Bielsa’s team, totalling just 48 minutes. At the end of his short-term loan, he signed for Nantes, but Leeds did not fulfil their contractual obligation to sign him for £18 million if they were promoted to the Premier League at the end of the 2019/20 season. Leeds gained promotion after winning the Championship by 10 points.
According to The Athletic, Fifa’s Dispute Resolution Chamber found the case “partially in Augustin’s favour”. As a result of Leeds’ breach of Augustin’s contract, they are set to pay him five years’ worth of an £80,000-a-week deal. The club has issued a statement saying that it cannot comment on an ongoing legal matter.
In December, Leeds reached an “amicable resolution” with RB Leipzig as they came to a £15.5 million settlement following a dispute around Augustin, who now plays for Basel. This was a negotiated figure from the £18 million fee that Leipzig wanted. In June 2021, a Fifa hearing upheld Leipzig’s claim called the “Challenged Decision” and ordered Leeds to make a first payment of £5.85 million. The Premier League side then lost their appeal in the Court of Arbitration for Sport.
The case highlights the importance of fulfilling contractual obligations in football and the potential financial consequences of failing to do so. It also raises questions about the management of player transfers and loan deals, and the need for clubs to ensure that they have the necessary resources and structures in place to meet their contractual obligations.
Leeds United has a history of financial difficulties, having been relegated from the Premier League in 2004 and subsequently entering administration. The club was taken over by current owner Andrea Radrizzani in 2017, and under his leadership, it has enjoyed a resurgence, returning to the Premier League in 2020 after a 16-year absence.
The Augustin case is not the first time that Leeds has faced legal action over a transfer deal. In 2018, the club was ordered to pay £200,000 to former player Ross McCormack after it was found to have breached his contract by withholding his salary. McCormack, who now plays for Aldershot Town, had been on loan at Melbourne City at the time.
Leeds United’s financial situation is closely monitored by fans and analysts alike, with concerns about the club’s ability to compete with wealthier Premier League rivals. The Augustin case is likely to add to these concerns, as the payment of £24.5 million could have a significant impact on the club’s finances.
In conclusion, Leeds United Football Club is reportedly facing a £24.5 million payment to former player Jean-Kevin Augustin after breaching his contract by failing to sign him permanently. The case highlights the importance of fulfilling contractual obligations in football and the potential financial consequences of failing to do so. It also raises questions about the management of player transfers and loan deals, and the need for clubs to ensure that they have the necessary resources and structures in place to meet their contractual obligations.