Sports Direct loses appeal over football kit deal

A boy is holding up a sign asking for a shirt in a sea of Newcastle supporters Image source, Action Images/Reuters
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Lawyers for Sports Direct had previously argued preventing the retailer from selling cheaper Newcastle shirts would harm fans

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Sports Direct has lost a bid over Newcastle United's exclusive football kit supply deal with rival retailer JD Sports.

It means the retailer, run by former Newcastle owner Mike Ashley's Frasers Group, will not be able to sell Newcastle replica kit for at least the 2024/25 Premier League season.

Sports Direct's lawyers had previously argued preventing the "home of football supplies" from selling cheaper shirts would harm fans but Newcastle United said there was "no evidence" competition would be damaged.

On Friday, three Court of Appeal judges dismissed Sport's Direct's request for an interim injunction.

Image source, PA Media
Image caption,

Sports Direct founder Mike Ashley owned Newcastle United for 14 years

Last month, the Competition Appeal Tribunal (CAT) rejected a request from Sports Direct for a temporary court order forcing Newcastle to supply it ahead of a planned full trial of the legal claim.

The company, which has 488 stores, then went to the Court of Appeal but three judges have now dismissed the retailer's request.

Sir Geoffrey Vos, sitting with Sir Julian Flaux and Lady Justice Andrews, said that while the CAT was wrong to find there was no serious case to be tried, it made the right decision in not granting the injunction.

Image source, Reuters
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Newcastle United wanted to bring the sales of shirts in-house but had also agreed an exclusivity deal with JD Sports

Sir Geoffrey added: "The trial will no doubt be hard fought, but the damage to Newcastle United will be far more fundamental if the injunction is wrongly granted than the damage that will be done to Sports Direct if it misses one, or even two, seasons' supply."

The new home strip is due to be launched on 7 June, with the away kit coming out in July and a third strip in August.

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