CMA - Anti competitive Behaviour

[Sly]

I must have forgotten about this at some point. 
 

https://www.gov.uk/cma-cases/suspected-anti-competitive-behaviour-in-relation-to-the-sale-of-leicester-city-fc-branded-products-and-merchandise#case-information

 

I believe the maximum fine is 10% of worldwide turnover. 

 

If that’s Leicester City Football Club, that’s £22.6m.

 

If that’s the parent company, King Power  International Group, then that’s closer to £200m. 

[eblair]

Lol not gonna get 22.6m fine for selling football shirts at 10% premium 

 

Low 7 figures maximum and doubt that high

[sylofox]

So what have we supposedly done wrong?

[st albans fox]

5 minutes ago, sylofox said:

So what have we supposedly done wrong?

Paid £15m for Vestegaard 

[sylofox]

1 minute ago, st albans fox said:

Paid £15m for Vestegaard 

Deserve what we get then.

[peach0000]

21 minutes ago, sylofox said:

So what have we supposedly done wrong?

This is just a guess but I can remember there was news not so long ago that football clubs were being investigated for conspiring with retailers to fix prices of merchandise. As JD are also named in the investigation I think it’s likely that could be it. 
 

Clubs basically only sell the product themselves and let one or two retailers sell their products but part of the deal (the illegal part) is they force them to sell at the same price as the club and never discount. 

[Yes N'Didi]

1 hour ago, eblair said:

Lol not gonna get 22.6m fine for selling football shirts at 10% premium 

 

Low 7 figures maximum and doubt that high

As OP stated a breach of competition law is 10% of turnover. It’s happened to a lot of companies in the past and the fact there’s an actual investigation still ongoing (albeit it appears for how long it’s going on for it hasn’t got too much evidence) isn’t great.

 

As a retailer you simply cannot tell anyone who purchases your products how much to sell it for. There is an RRP for the products. They could sell the whole lot for £1 if they want and LCFC cannot say anything. They can choose to cease supply to them in future but this looks like they were unhappy that JD choose to markdown the stock and asked them to return it to full price.

[eblair]

16 minutes ago, Yes N'Didi said:

As OP stated a breach of competition law is 10% of turnover. It’s happened to a lot of companies in the past and the fact there’s an actual investigation still ongoing (albeit it appears for how long it’s going on for it hasn’t got too much evidence) isn’t great.

 

As a retailer you simply cannot tell anyone who purchases your products how much to sell it for. There is an RRP for the products. They could sell the whole lot for £1 if they want and LCFC cannot say anything. They can choose to cease supply to them in future but this looks like they were unhappy that JD choose to markdown the stock and asked them to return it to full price.

I don’t disagree we’ve done it; but it’s a 10% maximum fine I don’t think this warrants it but could be wrobg

[davieG]

21 minutes ago, Yes N'Didi said:

As OP stated a breach of competition law is 10% of turnover. It’s happened to a lot of companies in the past and the fact there’s an actual investigation still ongoing (albeit it appears for how long it’s going on for it hasn’t got too much evidence) isn’t great.

 

As a retailer you simply cannot tell anyone who purchases your products how much to sell it for. There is an RRP for the products. They could sell the whole lot for £1 if they want and LCFC cannot say anything. They can choose to cease supply to them in future but this looks like they were unhappy that JD choose to markdown the stock and asked them to return it to full price.

Surely the fine would only relate to profits from the world wide sale of restricted merchandise not the total turnover of the club's business

[Chrysalis]

28 minutes ago, Yes N'Didi said:

As OP stated a breach of competition law is 10% of turnover. It’s happened to a lot of companies in the past and the fact there’s an actual investigation still ongoing (albeit it appears for how long it’s going on for it hasn’t got too much evidence) isn’t great.

 

As a retailer you simply cannot tell anyone who purchases your products how much to sell it for. There is an RRP for the products. They could sell the whole lot for £1 if they want and LCFC cannot say anything. They can choose to cease supply to them in future but this looks like they were unhappy that JD choose to markdown the stock and asked them to return it to full price.

What about food when retail price is printed on product forcing the retailer to comply?

[ThorpeAstleyFox]

1 minute ago, Chrysalis said:

What about food when retail price is printed on product forcing the retailer to comply?

They actually do not need to comply. It is a Recommended Retail Price. I purchased an "85p" labelled can of coke yesterday for £1.20!

[Guest Mickyblueeyes]

 

4 minutes ago, Chrysalis said:

What about food when retail price is printed on product forcing the retailer to comply?

The retailer can still reduce that price. All must go - blah. Blah.

 

It’s setting out in the contract that you must sell at. You must not sell at. 
 

This is actually quite an amateurish mistake if it’s true. 

Edited 28 August 2022 by Mickyblueeyes

[Yes N'Didi]

38 minutes ago, davieG said:

Surely the fine would only relate to profits from the world wide sale of restricted merchandise not the total turnover of the club's business

Incorrect - 10% turnover. Every sizeable retailer trains their staff in this very methodically when they start - it only takes one email between retailer and wholesaler asking to amend the price online, even if it’s a genuine error, and then agreeing it without question, for the CMA to agree that both parties have entered into a price fixing cartel which then sees one try and get immunity by grassing the other out to save themselves the fine.

[Chrysalis]

KP latest turnover 10% would be about 90million i think.

Edited 28 August 2022 by Chrysalis

[AmyLGK]

Are posts disappearing?? Im sure someone replied with "there is some anti competitive behaviour going on on the pitch" which is genuinely what I thought this thread was about 😄

[Mike Oxlong]

57 minutes ago, ThorpeAstleyFox said:

They actually do not need to comply. It is a Recommended Retail Price. I purchased an "85p" labelled can of coke yesterday for £1.20!

You should apply for a job with our player recruitment team 

[HybridFox]

Sounds like a qualification Brendan should have against his name

 

Brendan Rodgers CMA

[Sly]

Yes, if it’s “price fixing”,

the competitions commission would come down on this quite hard, should they find evidence. 
 

I suppose the concerning thing is, that once they identify one thing, they’ll go looking for other stuff.