Competition watchdog investigates LCFC kit

[JohnnieFoxWalker]

https://www.thetimes.co.uk/article/competition-watchdog-on-trail-of-leicester-city-over-kit-fbk3fqtcj

[davieG]

Competition watchdog on trail of Leicester City over kit
Hamzah Khalique-Loonat | Ashley Armstrong
Friday October 01 2021, 12.01am, The Times

Leicester City and JD Sports say they are co-operating fully with the watchdog, which has the power to impose huge fines
Leicester City and JD Sports say they are co-operating fully with the watchdog, which has the power to impose huge fines

The Competition & Markets Authority has launched an investigation into Leicester City football club and JD Sports, the retailer.

The competition regulator said that it had “reasonable grounds to suspect one or more breaches of competition law” in relation to retail and wholesale under the Competition Act 1998, but stopped short of asserting that the premiership club, known as the Foxes, had broken the law.

The watchdog, which can impose fines equivalent to 10 per cent of a company’s global turnover and ban directors for up to 15 years in the most serious cases, 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.”

In a statement the club said: “Leicester City football club takes its obligations to comply with competition law very seriously and is fully co-operating with the Competition and Markets Authority.” A spokesman for JD Sports said: “We are co-operating fully with the CMA’s investigation. We have no further comment at this time.”

Commercial sources of income have been particularly important for Premier League football clubs. According to the football finance blogger Swiss Ramble, commercial sources created £29 million worth of revenue in Leicester City’s most recent accounts, representing 7 per cent annual growth, in spite of the Covid-19 pandemic hitting footballing revenues particularly hard.

In the 2019 financial year, commercial income contributed £36 million to Leicester City’s annual revenues. In both years commercial revenues comprised a fifth of overall revenues.

Replica football strips were investigated by competition authorities in 2003 when the biggest names in football, including JD Sports, Manchester United and Umbro, were hit with fines for fixing their prices. In December, the CMA also launched an investigation into Rangers football club amid allegations of price fixing replica football kits sold by JD Sports and other retailers.

 

[fox_up_north]

Someone explain - is this price fixing related?

[Guest Chocolate Teapot]

35 minutes ago, fox_up_north said:

Someone explain - is this price fixing related?

Sounds like they've told JD what the price of the kit should be.

[fox_up_north]

So they've "told" them, rather than an RRP? 

 

Have to admit I don't know much about this but I can assume they've said something like "don't sell it for less than X"?

[TheUltimateWinner]

I don’t understand what any of this means, but typical Leicester city to be part of a scandal 

[Bourbon Fox]

4 minutes ago, fox_up_north said:

So they've "told" them, rather than an RRP? 

Likely. 

 

That, or they've said 'we will sell it to you for X price but you agree that it won't go onto a discount rail until the club shop does the same'

[phoneticerror]

7 minutes ago, TheUltimateWinner said:

I don’t understand what any of this means, but typical Leicester city to be part of a scandal 

You spelt Manchester City wrong

[Wymsey]

Susan will sort this issue out.

[Guest Chocolate Teapot]

1 hour ago, Bourbon Fox said:

Likely. 

 

That, or they've said 'we will sell it to you for X price but you agree that it won't go onto a discount rail until the club shop does the same'

That's the accusation. Consumer law states retailers are free to set their own pricing so suggested we've not done that.

[blabyboy]

3 hours ago, Wymsey said:

Susan will sort this issue out.

The curse of CEO of the Year didn't take long... must work in the same way a Manager of the Month.

[Lambert09]

Whilst the watchdog are at it, can they investigate that generic adidas shirt that they chucked a logo on and added £40 to the price? That was truly criminal 

[st albans fox]

Its a bit odd

 

the shirts are £60 on adidas and JD website plus the club shop

 

i wonder if we have entered an agreement with JD as sole high street retailer on our kits which would clearly hold back any competition.  but surely we can decide where our kits are sold ??

 

however, looking across other websites  - does anyone discount PL shirts ?

[ozleicester]

Wait till they hear about Aliexpress/DHGate

[ALC Fox]

Kinell the only places I used to City shirts for sale was the stadium megastore or the little JC Sports shop in town. Now we're apparently price-fixing. Beggars belief.

 

In all seriousness, this sort of thing has happened before, with JJB, Man Utd and even the FA receiving fines.

 

If we start getting astronomical fines and directors being banned it'll raise questions about someone somewhere being rattled about us breaking the glass ceiling. Not that I'm normally a rabid conspiracy theorist, you understand.

[AS78UK]

Struggling to believe that commercial side of Leicester doesn't know that you can't dictate prices only recommend them, especially in writing. 

 

[moore_94]

 

[Ric Flair]

Given Jon Rudkin appears not to be performance measured on the football operations side of the business, can we pin this on him? 

[davieG]

The club is fast becoming an embarrassment rather than one to be proud of.

 

Seemingly looking for every opportunity to cream the fans whilst dishing out donuts & beer.

 

Role Models. Not any more.

[ACF]

9 minutes ago, moore_94 said:

 

Anti-competitive in the market and in the premier league!

[Simoken]

lol, **** this club.

[VLC86]

A little bit awkward for King Power considering what they do, I’m sure they have just as stringent competition laws in Thailand that they strictly adher to…..

[mozartfox]

Whoever in the Marketing dept. dreamt this scheme up - MUST be binned off immediately. I am sure FoxesTrust are on the case……

[VLC86]

Give them Yannik and tell them to keep the change.

[UniFox21]

2 minutes ago, mozartfox said:

Whoever in the Marketing dept. dreamt this scheme up - MUST be binned off immediately. I am sure FoxesTrust are on the case……

"We welcome the positive outlook of the board following our recent fine for anti-competitive arrangements..."

Edited 5 July 2023 by UniFox21