elite – The NEN – North Edinburgh News

All together now: Firms fined for fixing prices of Rangers merchandise

The CMA has imposed fines totalling over £2 million on Elite Sports, JD Sports and Rangers FC after they admitted to fixing the prices of certain Rangers FC merchandise

The Competition and Markets Authority (CMA) has found that Elite Sports and JD Sports broke competition law by fixing the retail prices of a number of Rangers-branded replica kits and other clothing products from September 2018 until July 2019.

Rangers FC also took part in the collusion but only to the extent of fixing the retail price of adult home short-sleeved replica shirts from September 2018 to mid-November 2018. All three firms colluded to stop JD Sports undercutting the retail price of the shirt on Elite’s Gers Online store.

Elite Sports has been fined £459,000, JD Sports £1,485,000 and Rangers £225,000. The penalties include a settlement discount, reflecting resource savings to the CMA as a result of all 3 parties admitting to acting illegally and helping bring a swifter resolution to the CMA’s investigation.

Elite Sports’ and JD Sports’ penalties also include a discount for coming forward with information about their participation in the illegal conduct and cooperating with the investigation under the CMA’s Leniency Programme.

Michael Grenfell, Executive Director of Enforcement at the CMA, said: “At a time when many people are worried about the rising cost of living, it is important that football fans are able to benefit from competitively priced merchandise. Instead, Elite, JD Sports and, to some extent, Rangers, worked together to keep prices high.

“Today’s decision sends a clear message to football clubs and other businesses that illegal anti-competitive collusion will not be tolerated.”

During the time of the infringement, Elite was the manufacturer of Rangers-branded clothing and also sold Rangers-branded products directly through its Gers Online store and later in bricks-and-mortar shops in Glasgow and Belfast. The only UK-wide major retailer selling those products at the time was JD Sports.

The CMA’s investigation found that Rangers FC became concerned about the fact that, at the start of the 2018 to 2019 football season, JD Sports was selling the Rangers replica top at a lower price than Elite, which was seen at the time as the club’s ‘retail partner’.

This resulted in an understanding between the 3 parties that JD Sports would increase its retail price of the Rangers adult short-sleeved home replica shirt by nearly 10%, from £55 to £60, to bring it in line with the prices being charged by Elite on Gers Online.

The CMA also found that Elite and JD Sports – without involvement from Rangers – colluded to fix the retail prices of Rangers-branded clothing, including training wear and replica kit, over a longer period. This included aligning the level and timing of discounts towards the end of the football season in 2019, to avoid competition between them and protect their profit margins.

More information can be found on the case page: Suspected anti-competitive behaviour in relation to the pricing of Rangers FC-branded replica football kit.

Cutting football club expenses by just 5% could help 118,137 vulnerable people

Top football clubs could improve the lives of 118,137 vulnerable people by giving just 5% of their expenditures to the local community, new research shows.
Football club expenses equate to help for 2.3 million vulnerable people.
Club vs Community reveals the potential social impact top clubs could have if they were to reduce their inessential expenses over a year.
Real Madrid could reduce the risk of poverty for 2,321 children by cutting their spend on acquiring players by 5%, or help 1,431 adults find employment.
It would cost €1,669 to provide intervention for a homeless adult in the UK, and just €800 to teach workers the skills they need to find employment in Paris.
Top football clubs could improve the lives of 118,137 vulnerable people by giving just 5% of their expenditures to the local community, new research shows.
Football club expenses equate to help for 2.3 million vulnerable people.
Club vs Community reveals the potential social impact top clubs could have if they were to reduce their inessential expenses over a year.
Real Madrid could reduce the risk of poverty for 2,321 children by cutting their spend on acquiring players by 5%, or help 1,431 adults find employment.
It would cost €1,669 to provide intervention for a homeless adult in the UK, and just €800 to teach workers the skills they need to find employment in Paris.

If the world’s top football clubs were to cut their inessential expenditures by just 5%, they could collectively improve the lives of 118,137 vulnerable members of society, new research shows.

The 15 highest-earning teams in the world, as decided by the Deloitte Football Money League 2019, have spent a staggering €6.923 billion on salaries and bonuses, upgrading facilities and acquiring players over the past year.

Club vs Community calculates the cost of rectifying key social issues in various countries around the world – including homelessness, social care and unemployment – and measures this against football clubs’ expenditure as detailed in the latest available financial reports.

However, with the question as to whether footballers are overpaid remaining a point of contention among fans, Club vs Community asks how much more teams could be doing to help address prevalent social issues.

Although directly rectifying hard-hitting social issues may be beyond the remit of football clubs, the fact remains that the average pay in the Premier League is around €230,000 per month – a staggering 120 times more than the typical €1,916 EU monthly wage.

In Spain, raising the income for all impoverished households with children to the OECD average and thereby reducing the risk of poverty would cost €5,365 per capita – while Real Madrid spent €249 million on player transfers alone in 2019.

The highest-earning football clubs and their potential social reach

Over the past year, Manchester United have spent €27 million on sponsorship and broadcasting, while Inter Milan have splashed out €183,000 on PR and gifts. If both teams were to cut these expenditures by 10%, they could improve the lives of 1,839 local people.

To find out more about the cost of tackling social issues, and how high-earning clubs can help reach this goal, view the full Club vs Community study here: https://www.netbet.co.uk/blog/club-community/.