The CMA has provisionally found that Leicester City FC and JD Sports colluded to restrict competition in the sales of Leicester City-branded clothing, including replica kit, in the UK.
As part of an investigation which began in September 2021, the Competition and Markets Authority (CMA) has issued a statement of objections, which sets out its provisional assessment of the case. This follows admissions by Leicester City FC and JD Sports that they broke competition law by entering into an arrangement which limited competition in the sales of Leicester City-branded clothing, including replica kit, in the UK.
Leicester City FC and its parent companies have, under the settlement procedure, admitted Leicester City FC’s participation in the alleged arrangement. They have agreed to pay a fine under the CMA’s settlement policy of a maximum £880k. This includes a settlement discount from the fine that would have otherwise been imposed reflecting resource savings to the CMA as a result of Leicester City FC admitting to acting illegally and helping bring a swifter resolution to the CMA’s investigation.
Although the findings are addressed to Leicester City FC’s parent companies, as well as to the company itself, this is because of the standard legal rules that parent companies have joint and several liability for competition law infringements; the CMA is not suggesting, and has no reason to believe, that the parent companies themselves were directly involved in the unlawful conduct.
JD Sports reported the illegal conduct and admitted its participation in the alleged conduct by way of a leniency application. It will not receive a fine provided that it continues to co-operate and to comply with the other conditions of the CMA’s leniency policy.
The case relates to the following arrangement between Leicester City FC and JD Sports:
- In August 2018, that JD Sports would stop selling Leicester City-branded clothing online for the 2018/19 season
- In January 2019, that JD Sports would not undercut Leicester City in terms of online sales for the 2019/20 season by applying a delivery charge to all orders of Leicester City-branded clothing – disapplying its company-wide promotional offer of free online delivery for all orders over £70
- By July 2020, that JD Sports would continue to apply delivery charges to online orders of Leicester City-branded clothing for the 2020/21 season as well. This continued until at least 26 January 2021
Michael Grenfell, Executive Director of Enforcement at the CMA, said: “Strong and unimpeded competition between retailers is essential to consumers’ ability to shop around for the best deals.
“Football fans are well-known for their loyalty towards their teams. In this case we have provisionally found that Leicester City FC and JD Sports colluded to share out markets and fix prices – with the result that fans may have ended up paying more than they would otherwise have done. Both parties have now admitted their involvement, allowing us to bring the investigation to a swift conclusion.
“The fine that Leicester City FC and its parent companies have agreed to pay sends a clear message to them and other businesses that anti-competitive collusion will not be tolerated.”
