Rangers accused of illegal price-fixing of club merchandise as JD Sports and Elite Sports braced for fines

Rangers Football Club, JD Sports and Elite Sports have been accused of illegally fixing prices of their club merchandise.

The Competition and Markets Authority (CMA) state the Ibrox club allegedly colluded to fix the price of the main adult long-sleeved replica home kit over a three-month period in 2018.

They also confirmed that kit manufacturer Elite Sports and JD Sports could expect to face fines if they are found to have broken the law for fixing the retail prices of a number of Rangers-branded clothing products from September 2018 until at least July 2019.

JD Sports have reportedly already set aside £2million in their financial statements ahead of any potential repercussions, with the CMA confirming they have “confessed to cartel activity” and “applied for leniency” in an attempt to have their penalties reduced.

An investigation was launched by UK competition watchdog in October 2021 over the price of replica kits.

Michael Grenfell, executive director of enforcement at the CMA, said: “We don’t hesitate to take action when we have concerns that companies may be working together to keep costs up.

“Football fans are well-known for their loyalty towards their teams.

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

They added that “any business found to have infringed the prohibitions in the Competition Act 1998 can be fined up to 10 per cent of its annual worldwide group turnover.”

A statement released by JD Sports read: “The CMA’s findings are, at this stage, only provisional and the group will now review them with its advisers.

“The CMA will consider any representations that are made before issuing its final findings.

“As the CMA has noted, JD has co-operated fully with the CMA and, provided this continues, JD will receive a reduction on any financial penalties that the CMA may decide to impose.

“Based on the information available to it at this time, the Group intends to recognise a provision of approximately £2 million in its financial statements for the 52 weeks to 29 January 2022 representing the Group’s best estimate of the liability payable in resppect of this matter, including associated legal costs.

“The Group expects to release its final results for this period, incorporating this provision, shortly.”