JD Sports, Elite and Rangers fixed replica kit prices, regulator rules

JD Sports Fashion, Elite Sports and Rangers Football Club conspired to illegally fix the price of replica kits at the expense of fans, the competition regulator ruled on Tuesday.

Announcing its provisional findings, the Competition and Markets Authority said JD Sports and Elite had fixed the retail prices of a number of Rangers-branded replica football kits and other clothing products between September 2018 and "at least" July 2019.

The Scottish Premiership club was also found to have taken part in the alleged collusion, by fixing the retail price of adult home short-sleeved replica shirts for nearly three months.

Michael Grenfell, CMA executive director of enforcement, said: "Football fans are well-known for their loyalty towards their teams.

"We are concerned that Elite, JD Sports and to some extent Rangers many have colluded to keep prices high, so that the two retailers could pocket more money for themselves at the expense of fans."

All the parties are now able to make representations to the CMA before it reaches its final decision. If Tuesday's provisional ruling is confirmed, the parties are likely to be fined.

JD Sports, which intends to put aside £2m to cover all liabilities, said it would review the CMA's findings. Elite did not immediately respond to a request for comment.

However, the CMA said that both JD Sports and Elite had applied for leniency during the probe and had "confessed to cartel activity". As a result, both companies are expected to receive a lower fine. The CMA is able to impose a fine of up 10% of annual worldwide group turnover.

The CMA said the Rangers had become concerned at the start of the 2018-19 season that JD Sports was selling its replica top at a lower price than Elite, the club’s then retail partner.

"This resulted in an understanding between the three parties that JD Sports would increase its retail price of the Rangers adult short-sleeved home replica shirt by nearly 10%, to bring it in line with the prices being charged by Elite," the regulator noted.

JD Sports and Elite, without Rangers’ involvement, were also found to have colluded to fix retail prices of Rangers-branded clothing including training wear and replica kit over a longer period.

Rangers said it would submit its response "in due course", adding that the CMA's statement of objections did not find "that Rangers had broken the law, and does not mean that the CMA will issue a final decision or impose a fine on Rangers".