Leeds United have tonight lost their court case against them in relation to a loan Sport Capital Direct Ltd decide to call in.

The company was one of the bidders for the club and it is believed that they loaned the club £950,000 last year.

Leeds United have been given thirteen days to pay back the money, after Leeds United lawyers told the court it was not a case of them not being able to pay, but the fact they will not pay back the loan.

The court registrar said that even though the clubs accounts were frozen that Massimo Cellino was paying bills, and could find the money to pay back the loan.

Leeds United club barrister Rory Brown argued that the club owed nothing and said in court “Everything in this case suggests that the loan was from Haigh,”

“If one looks at the agreement, the benefit goes to Haigh. The money came directly from Haigh.

“The money never touched the petitioner [Sport Capital]. It went straight from Mr Haigh’s account.”

Mr Brown said the club was also concerned that the money, if it came from Mr Haigh, might be tainted, given his recent arrest in a fraud investigation in Dubai.

And he said counter-claims which the club has against Mr Haigh himself would potentially “extinguish liability” for the loan.

Denying that the club is insolvent, the barrister continued: “There are funds readily available to pay. This is not a ‘can’t pay, won’t pay’ situation. This is a ‘can pay, won’t pay’ situation.”

Giving judgment, Deputy Registrar Garwood said the fact that the money came from Mr Haigh’s account, and not from Sport Capital, did not mean that he was the lender.

It was “obvious and clear” that the lender was Sport Capital, he said.

The club, having received a demand for payment and done nothing about it, was now “scratching around” looking for ways to address the problem.

“They did not seek to engage with Sport Capital in terms of paying or negotiating for time to pay, or even raising issues as to payment,” he said.

“The view was simply taken: we will ignore it.

He added: “The club is the author of its own misfortune.”

The winding up petition will be dropped if Leeds United pay the amount in full by a week Monday.

The club were also refused the right to appeal by the court.