Football kit price-fixing

No. CA98/06/2003

This decision was appealed to the Competition Appeal Tribunal on 1 October 2003. On 1 October 2004 the Competition Appeal Tribunal substantially upheld the OFT's decision on liability. For further details see Competition Appeal Tribunal website.

1 August 2003

The Office of Fair Trading has decided that a number of sportswear retailers, Manchester United plc, the Football Association Ltd and Umbro Holdings Ltd have all entered into price-fixing agreements in relation to replica football kit infringing the Chapter I prohibition contained in section 2 of the Competition Act 1998. 

Allsports Ltd, Blacks Leisure Group plc, JJB Sports plc, Manchester United plc, Sports Soccer Ltd, The John David Group plc and Umbro Holdings Ltd were involved in various agreements or concerted practices which fixed the prices of the top-selling adult and junior short sleeved replica football shirts manufactured by Umbro Holdings Ltd. 

These were the replica football shirts of the England team and Manchester United, Chelsea, Glasgow Celtic and Nottingham Forest football clubs. Some of the parties were involved with the shirts of only one or some of the teams and some for longer periods than others. 

The longest that any of the parties were involved was from April 2000 until August 2001. The agreements or concerted practices took effect during key selling periods after the launch of a new replica football kit and during the Euro 2000 tournament. 

Florence Clothiers (Scotland) Ltd (in receivership) (formerly trading as 'Sports Connection') and Umbro Holdings Ltd were involved in an agreement or concerted practice which fixed the prices of Glasgow Celtic's adult and junior short sleeved replica football shirt for a short period during the spring of 2001.

JJB Sports plc, Sportsetail Ltd (in administration) (formerly trading at 'England direct.com'), the Football Association Ltd and Umbro Holdings Ltd were involved in an agreement or concerted practice which fixed the prices of the England team adult, junior and infant replica football kit sold at England-direct.com by aligning their retail prices to the high street prices of JJB Sports plc. The agreement lasted from the early spring of 2000 until the late autumn of 2001. 

The Office of Fair Trading considers that agreements between undertakings that fix prices are among the most serious infringements of the Competition Act 1998. Financial penalties are therefore being imposed on all parties.  However, Florence Clothiers (Scotland) Ltd (in receivership), Sportsetail Ltd (in administration) and the Football Association Ltd have each been granted leniency and the financial penalties imposed on each of them are being reduced accordingly. 

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