Kieran Maguire: Leeds United debt bill soaring amid source’s near-£20m reveal
Leeds United are facing a mounting debt bill the longer their dispute with RB Leipzig over the transfer of Jean-Kevin Augustin rumbles on.
That is the view of finance guru Kieran Maguire, speaking exclusively to Football Insider about the latest twist in the Court of Arbitration case over the contested loan transfer dating back to January 2020.
The centre-forward, now 25 and playing at FC Basel, joined Leeds on loan with an option to buy for £17.7million – but the option turned into an obligation should the Whites be promoted at the end of 2019-20.
But after the West Yorkshire side sealed a place in the top flight, they argued that the disruption to the season caused by the pandemic nullified the clause.
FIFA ruled in RB Leipzig’s favour, prompting Leeds to take the matter to CAS, the most senior legal body in football.
A source told Football Insider on Thursday (26 October) that CAS too are almost certain to order Leeds to pay the Bundesliga side.
And Maguire explains that they will now have to pay interest on top of the original fee.
“There is an element of precedent when it comes to disputes between football clubs over transfers,” he told Football Insider’s Adam Williams.
“If we look at the CAS verdict in the case of the tragic death of Emiliano Sala following his moves from Nantes to Cardiff City, Cardiff had to pay interest of five per cent in respect of the monies outstanding on the first instalment of the transfer.
“Therefore, if that precedent is upheld, Leeds will have to pay interest on top of the cash flows that have been agreed for the transfer itself.
“That is not an insignificant sum of money and this is far from an ideal situation for Leeds to find themselves in.”
In other news, pundit suggests Leeds United have got it “completely wrong” after source’s “bizarre” Jesse Marsch update.