WHEN it comes to Rangers and their retail arrangements, it seems that nothing is ever simple. Now there is another twist in the tale.
From court cases to customer service, boycotts to bottom lines, there is not an area that the Ibrox board haven't had problems to solve in recent years as supporters have been stuck in the dark and left to ponder just where their hard-earned cash is going.
Here, Herald and Times Sport assesses the key questions after the Competition and Markets Authority provisionally found that Elite Sports, JD Sports and Rangers allegedly broke the law by fixing the price of official merchandise.
WHO ARE THE CMA AND WHY ARE THEY INVOLVED?
The Competition and Markets Authority is the competition regulator in United Kingdom and have staff in London, Edinburgh, Belfast and Cardiff. In April this year, SPFL chairman Murdoch MacLennan was appointed Chair of the Office for the Internal Market and as Non-Executive Director and he is a member of the Remuneration Committee.
In December 2020, the CMA opened an investigation into the sale of Rangers merchandise by Elite Sports and JD Sports. Their findings were made public on Tuesday but it was stated that 'no assumption should be made at this stage that any infringement has occurred.'
In their statement of objections, the CMA reported that 'Elite Sports, JD Sports and Rangers Football Club broke competition law by fixing the retail prices of certain Rangers-branded clothing products. The CMA provisionally found that Elite and JD Sports fixed the retail prices of Rangers-branded replica kits and other clothing products, and that Rangers took part in the alleged collusion only to the extent of fixing the retail price of adult home short sleeved replica shirts.'
WHAT HAVE ELITE, JD SPORTS AND RANGERS BEEN ACCUSED OF?
The investigation centres around the sale of replica kits between September 2018 and at least July 2019 and the watchdog determined that Rangers were involved in alleged collusion, but only to the extent of fixing the price of adult short-sleeved home shirts.
It is alleged that Rangers were concerned at the fact that, at the start of the 2018/19 campaign, JD Sports were selling tops at a lower price than Elite, which was seen at the time as the club’s ‘retail partner’ following the latest developments in the Sports Direct saga in the previous months.
The CMA claim this resulted in agreement between all three parties that JD would increase its retail price from £55 to £60 to bring it in line with what supporters were being charged by Elite through Gers Online and later in shops in Glasgow and Belfast.
The report also states that JD and Elite - without the involvement of 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 at the expense of fans.'
HAVE THE CMA COMMENTED FURTHER ON THE CASE?
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.”
AND WHAT HAVE RANGERS SAID ON THE ALLEGATIONS?
A club statement on Tuesday morning read: “The Rangers Football Club Limited (‘Rangers’) confirms that it has today received a Statement of Objections (‘SO’) from the Competition and Markets Authority (‘CMA’) which sets outs the CMA’s preliminary findings in relation to its investigation into the pricing of Rangers-branded replica football kit between September 2018 and November 2018.
"The SO represents the CMA’s provisional view only. It is not a finding that Rangers has broken the law and does not mean that the CMA will issue a final decision or impose a fine on Rangers.
“Rangers is committed to operating its business in full compliance with all laws, including competition law, and treats this matter very seriously.
"As such, Rangers will review in detail the CMA’s preliminary findings and will be submitting its response to the CMA in due course. Rangers notes that it has cooperated with the CMA since the investigation was initiated and will continue to do so.”
WHAT IS THE POSITION OF ELITE AND JD SPORTS?
JD Sports, which made revenues of £6.2bn in 2021, have made a provision of £2million in its results for the year to 29 January and both they and Elite, as well as Rangers, will have the chance to make representations before a final decision is reached. Companies that are found to have infringed the prohibitions in the Competition Act 1998 can be fined up to 10% of its annual worldwide group turnover.
The CMA have stated: “Elite and JD Sports applied for leniency during the CMA’s investigation and confessed to cartel activity. Provided they continue to cooperate with the investigation, each will receive a reduction on any financial penalties the CMA may decide to impose.”
DOES THIS HAVE ANY IMPACT ON RANGERS' CURRENT RETAIL DEALS?
The short answer is no. The CMA investigation only concerns the actions of Elite, JD and Rangers during the period in question and a probe into Greaves Sports Ltd was closed this month 'on administrative priority grounds'.
Current retail partners Castore have unveiled new training ranges and the away kit for the upcoming campaign in recent weeks and Rangers have a contract - worth around £5million per annum - until 2025 with the Liverpool-based manufacturer.
