Leeds United would be plunged into a disastrous situation if a transfer embargo is imposed following the Whites' court battle with RB Leipzig, according to journalist Pete O'Rourke.

The Whites' case against the German club over the transfer of Jean-Kevin Augustin was heard by the Court of Arbitration for Sport earlier this week.

What's the latest news involving the case?

Augustin made the loan move to Leeds from Bundesliga giants Leipzig in January 2020, with the agreement understood to include the obligation to make the transfer permanent for £18million if Leeds were promoted to the Premier League.

The striker went on to enjoy just 48 minutes of action after heading to Yorkshire but then returned to Germany as the coronavirus pandemic took hold.

Leeds went on to win the Championship title after Augustin had been sent back to Leipzig, with the Whites ending their 16-year absence from the top flight.

Leipzig argued that they were owed the agreed fee because Leeds were promoted and FIFA ruled in their favour, ordering Leeds to pay up.

The Whites appealed and the Court of Arbitration for Sport will decide in the coming months whether they will have to part with a lucrative fee.

Sky Sports Germany have suggested that Leeds may be forced to pay five per cent interest on each of their three separate payments should their appeal not go to plan.

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What has Pete O'Rourke said about the situation?

O'Rourke fears Leeds may be hit with a transfer embargo if the Court of Arbitration for Sport rules in Leipzig's favour.

The journalist reckons, alternatively, the Whites' summer plans could be cast into doubt if they are forced to pay up as it would eat into their budget for the close season.

O'Rourke told GIVEMESPORT: "If things don't go right for them at this Court of Arbitration hearing over the Augustin thing, it could really bite into their transfer budget for next season or there could even be a transfer embargo, which would be a disaster for Leeds United."

Where is Augustin plying his trade now?

Augustin is currently on the books of French side Nantes, but he has been restricted to just 35 minutes of Ligue 1 action since the season got underway.

The 24-year-old is still awaiting his first goal for his current employers, although he has found the back of the net 23 times over the course of his senior club career.

If Leeds were forced to pay upwards of £18million, it would result in them forking out a huge amount over what he is currently worth as Transfermarkt value the striker at just £1.35million.