Leicester City and JD Sports merchandise probe

A watchdog said it had "reasonable grounds to suspect one or more breaches of competition law"

An investigation into Leicester City and retailer JD Sports has been launched over the sale of merchandise.

The Competition and Markets Authority (CMA) said it had "reasonable grounds to suspect one or more breaches of competition law".

It relates to suspected infringements regarding anti-competitive agreements over the sale of club branded products in the UK, CMA added.

The club and JD Sports said they were "fully cooperating" with the probe.

"Leicester City Football Club takes its obligations to comply with competition law very seriously and is fully cooperating with the Competition and Markets Authority in respect of the investigation announced this morning," said a club spokesman.

The regulator said: "The CMA has not reached a view as to whether there is sufficient evidence of an infringement of competition law for it to issue a statement of objections or, ultimately, an infringement decision, to any party under investigation.

"Not all cases result in the CMA issuing a statement of objections or an infringement decision."

Last year, the CMA launched an investigation into price fixing of replica Rangers football kits sold by JD Sports and other retailers

The probe into Leicester City and JD Sports comes less than a year after the regulator launched an investigation into price fixing of replica Rangers football kits sold by JD Sports and other retailers.

In December last year, the CMA said it had reasonable grounds to suspect breaches of competition law.

JD Sports is also awaiting a final decision from the competition watchdog over its planned takeover of rival Footasylum after the CMA was told to reassess its original decision to block the deal.

The CMA said earlier this month that it still has concerns over the move following fresh analysis, but that a final decision was due around October.