Elite Sports, JD Sports, and Rangers Football Club all breached competition law by fixing the retail prices of some Rangers-branded clothing products, according to the CMA.
If the allegations are proven, the companies concerned might face sanctions.
The preliminary findings are as follows:
From September 2018 till at least July 2019, Elite Sports and JD Sports regulated the retail prices of a number of Rangers-branded replica kits and other clothing products.
Rangers FC was also allegedly involved in the alleged collusion, but solely to the extent of fixing the selling price of adult home short-sleeved replica shirts from September through at least mid-November 2018. All three parties reportedly conspired to prevent JD Sports from undercutting Elite’s Gers Online store on the selling pricing of the shirt.
Elite was the maker of Rangers-branded clothes at the time, and they also offered Rangers-branded merchandise directly through the Gers Online Store and later in physical stores in Glasgow and Belfast. JD Sports was the only big shop in the UK selling those items at the time.
Rangers FC was worried, according to the Competition and Markets Authority (CMA), because JD Sports was selling the Rangers replica top at a lower price than Elite, which was the club’s’retail partner’ at the time. As a result, the three parties reached an agreement that JD Sports would raise the retail price of the Rangers adult short-sleeved home replica shirt by approximately 10%, from £55 to £60, to match the prices paid by Elite on Gers Online.
The CMA is also concerned that Elite and JD Sports conspired to fix the retail prices of Rangers-branded goods, including training wear and replica kit, over a longer time without the assistance of Rangers. This included synchronizing discount levels and timing near the end of the football season in 2019, to limit competition and safeguard business margins at the expense of fans.
During the CMA’s investigation, Elite and JD Sports requested for leniency and admitted to cartel conduct. They will each receive a reduction in whatever financial penalties the CMA may decide to issue if they continue to assist with the inquiry. Any company found to have broken the Competition Act 1998’s prohibitions could face a punishment of up to 10% of its annual global group turnover.
The CMA’s Executive Director of Enforcement, Michael Grenfell, said:
We don’t hesitate to take action when we have concerns that companies may be working together to keep costs up.
Football fans are well-known for their loyalty towards their teams. We are concerned that, in this case, Elite, JD Sports and, to some extent, Rangers, may have colluded to keep prices high, so that the 2 retailers could pocket more money for themselves at the expense of fans.
These are the CMA’s provisional findings and the companies involved now have the chance to make representations to the CMA before it reaches a final decision.