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The Court of Arbitration for Sport (CAS) has issued its decision on Thursday, November 4 in the arbitration procedure between Leeds United FC and RB Leipzig concerning the decision issued on June 1, 2021 by the Single Judge of the Players’ Status Committee of FIFA (the Challenged Decision) which upheld RB Leipzig’s claim to be paid a transfer fee by Leeds United in accordance with the “Purchase Obligation” included in the loan agreement concluded between the clubs and the player Jean- Kévin Augustin (the Player).
The CAS Panel in charge of the matter has dismissed the appeal filed by Leeds United and confirmed the Challenged Decision in its entirety, including the obligation of Leeds United to pay to RB Leipzig the first instalment of the transfer fee, i.e. EUR 6’740’174.
On January 25, 2020, RB Leipzig, Leeds United and the Player concluded a loan agreement in which they agreed that the Player would be transferred temporarily from RB Leipzig to Leeds United until June 30, 2020. The Loan Agreement included a “Purchase Obligation” whereby the Player could be permanently transferred from RB Leipzig to Leeds United for a transfer fee of EUR 21 million, to be paid in three instalments, if Leeds United was promoted to the Premier League at the end of the 2019/20 English Football League season. On March 13, 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 Leeds United 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, Leeds United 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 March 15, 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 Leeds United 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.
