JD Sports and Leicester City FC price fixed replica kit

In early July 2023, Leicester City FC was found guilty of anti-competitive behaviour following an investigation of the Competition and Markets Authority (CMA).

Between 2018 and 2020, the football club and JD Sports had an arrangement to fix replica kit prices. In particular, they agreed the following:

• JD Sports would stop selling Leicester City branded clothing online for the 2018/2019 season;
• JD Sports would not undercut Leicester City when it came to online sales for the 2019/2020 season. A delivery charge was applied to the orders, setting aside the company offer of free online delivery for all orders over £70.00; and
• JD Sports would continue to apply the delivery charges by July 2020 for the 2020/2021 season.

The above continued until January 2021.

Arrangements which have for object or effect the prevention or restriction of competition within the UK are strictly prohibited by competition law.

The CMA Executive Office of Enforcement found that because of the club and retailer’s behaviour, fans may have ended up paying more than they would otherwise have done.

Although both parties have now admitted their involvement, JD Sports initially reported the illegal conduct. By doing so, JD Sports received immunity from penalties as part of the CMA’s leniency policy. Such a policy provides immunity from penalties, or significant reduction in penalty, to a business that has been involved in a cartel and who has reported the cartel activity as well as assisted the CMA with its investigation.

As a result of the above JD Sports will not receive a fine for its involvement. On the other hand, the Football Club received a fine of £880,000.00.

The rules around competition law are strict and aim to promote and maintain market competition. This is implemented by regulating anti-competitive behaviour. Our commercial solicitors provide assistance to businesses on issues involving competition law and would be happy to assist you on any related issues.

For further advice and assistance please contact our Commercial team on 01604 828282 / 01908 660966 or email info@franklins-sols.co.uk