The British retail group JD Sports Fashion Plc is again in trouble with the British competition authorities. On Tuesday, the Competition and Markets Authority (CMA) announced that it has found it has found illegal price fixing between retail chain JD Sports, marketing company Elite Sports Group Limited, now LBJ Sports Apparel Limited, and Glasgow-based Rangers Football Club in 2018 and 2019.
According to a CMA press release, the three companies involved have reached an agreement to offer Rangers jerseys and other branded products from the football club at uniform prices. JD Sports had previously sold the items significantly cheaper than the club’s fan shops operated by Elite, but had raised the prices accordingly after the agreement. The CMA said those involved would now face fines. Elite and JD Sports admitted to the “cartel activities” during the course of the investigation and would therefore receive reduced sentences.
JD Sports said in a statement that it had been informed of the results of the investigation and the notice of punishment by the competition authorities. However, the retailer emphasized the preliminary nature of the allegations and stated that it would now examine the available findings with its advisors. At the same time, the company announced that it had set aside approximately £2 million (EUR 2.3 million) in reserves to cover potential penalties.
The retailer has long been in conflict with the CMA. The committee prohibited the group from taking over the retail chain Footasylum, which was agreed in 2019, and imposed a fine of millions at the beginning of the year for illegal agreements between the two companies, in which the long-standing group boss Peter Cowgill was, according to the available information, personally involved. During his time at the head of JD Sports, the allegations now made also fall.
The ongoing criticism of Cowgill’s business practices has since had consequences: Following internal investigations, the group recently reformed its management structure to ensure greater transparency, at the same time Cowgill announced his immediate resignation.
