Two Rangers replica kit retailers fined nearly £2m for collusion
- Published
The CMA found JD Sports colluded with Elite Sports on prices and the timing of discounts at the end of the 2018-19 season
Two retailers of Rangers replica shirts have been fined a total of nearly £2m for colluding to keep prices high.
The Glasgow club has also been fined £225,000 by the Competition and Markets Authority (CMA) for its involvement, over a short period four years ago.
JD Sports was fined £1,485,000, nearly three-quarters of the total penalty.
A CMA investigation found evidence it colluded with Elite Sports, which was fined £459,000, to push up prices, and on timing of end-of-season discounts.
At the start of the 2018-19 season, Rangers had become concerned that JD Sports was undercutting Elite, which was the club's online retail partner, on replica tops.
An agreement was reached between the parties to increase JD Sports' price from £55 to £60 to match that of Elite.
The competition watchdog said the two retailers broke the law by fixing prices of the Rangers-branded kits and other clothing items from September 2018 to July 2019.
It added that Rangers "also took part in the collusion", but only in fixing the price of specific adult home short-sleeved shirts from September to mid-November in 2018.
The CMA said it also found that Elite and JD, without involvement from Rangers, fixed the prices of Rangers-branded clothing, including training wear and replica kit, over a longer period.
The regulator first began an investigation in December 2020.
'Clear message'
It is understood Rangers was disappointed to find itself subject to the CMA action, having appointed Elite as a partner in part because of its retail expertise.
The club has said it was not party to the discussions that took place between Elite and JD Sports but accepted the fine imposed by the CMA, given its role as the licensor of the intellectual property rights relating to its replica kit.
It noted that the CMA accepted that Rangers' role in the offending action was limited.
The three organisations fined admitted their roles in exchange for reduced fines.
JD Sports were fined nearly £1.5m for their part in the collusion
Michael Grenfell, the competition watchdog's executive director of enforcement, said at a time when the rising cost of living is a concern for many, "it is important that football fans are able to benefit from competitively priced merchandise".
"Instead, Elite, JD Sports and, to some extent, Rangers, worked together to keep prices high," he added.
"Today's decision sends a clear message to football clubs and other businesses that illegal anti-competitive collusion will not be tolerated."
JD Sports said it would not appeal against the penalty and had already set aside a provision of roughly £2m to cover the matter, including associated legal costs.
"No directors or senior management of JD were involved in the offending conduct, which took place in 2018-2019," the company added.
"JD has taken a number of steps to strengthen its competition compliance programme and is committed to ensuring that this is embedded into its daily operations."
- Published16 December 2020
