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Rugby union premier league revises anti-competitive rule

PN 112/03     11 August 2003

Newly promoted teams to the Zurich Premiership do not have to be the main tenant in their home stadium, following intervention by the OFT.

Premier Rugby Limited, which represents the 12 clubs within the English rugby union premier league, has revised a rule in its entry criteria that prevented promotion to the premier league of first division teams who are not the main tenants at their home stadium. The rule did not apply to some existing premier league teams.

The OFT has been investigating the effect of this rule on competition, following a complaint from English First Division Rugby against both Premier Rugby Limited and the Rugby Football Union, the English governing body for rugby union.

The rule effectively prevented Rotherham Rugby Union Football Club from being promoted to the Premiership in the 2001/2 season, as it is not the main tenant of its home stadium. The new provisions:

• replace the requirement that clubs have first call on a stadium with a requirement that clubs are able to provide a venue for home matches on dates specified in advance by the League 
• allow clubs to use two stadiums to meet this requirement, if necessary
• allow a play-off between clubs in the event that neither the club in the promotion position nor the club in the relegation position meets the requirement.

Penny Boys, OFT Executive Director, said:

'This welcome change means that promotion will be on the basis of competitive success on the pitch and not on who is the main tenant of the pitch.'

NOTES

1. Powers under the Competition Act 1998
The Act gives the OFT powers to investigate suspected infringements of the Act's prohibitions:
i) Chapter I prohibits agreements between undertakings, decisions by associations of undertakings or concerted practices which have the object or effect of preventing, restricting or distorting competition in the UK (or any part of it) and which may affect trade within the UK (or any part of it).
ii)  Chapter II prohibits conduct by one or more undertakings which amounts to the abuse of a dominant position in a market which may affect trade within the UK (or any part of it).

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