Sports Direct's football kit deal injunction fails

Newcastle United fansImage source, Reuters
Image caption,

Sports Direct had claimed Newcastle United fans would be harmed if the retailer were unable to sell the club's kits

  • Published

A bid by Sports Direct to get Newcastle United to sell next season's shirts in its shops has failed.

The Competition Appeals Tribunal unanimously rejected the firm's request for an immediate injunction to stop the club's exclusive deal with rival company JD Sports.

Sports Direct, which is run by former Newcastle owner Mike Ashley, had alleged competition would be damaged by the move.

The firm will still be able to take the club to court over the matter at a later date, if it wishes.

Sports Direct lawyers had previously said preventing the "home of football supplies" from selling cheaper shirts would harm fans.

But the judgement, external stated consumer benefit was a "neutral factor" in its assessment.

'Fetter on competition'

Newcastle's kit is currently made by Castore, but the club has agreed a "multi-year partnership" with Adidas starting in the 2024-25 season.

Judgement documents added "there was no reasonable or legitimate expectation on the part of Sports Direct of continuity of supply from Castore".

The judgement said: "To suggest that there was some obligation on Newcastle United FC and Adidas to ensure in their arrangements (i.e. between the Club and Adidas) that supply to Sports Direct be maintained over time represents a significant fetter on competition, not an enhancement of it."

The judgement added the injunction refusal made "a speedy trial more, and not less, urgent".

"We expect speedy (and, ideally, agreed) proposals from the parties, failing which the Tribunal will, in short order, make its own proposals," it said.

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