Competition watchdog confirms sanctions over JD Sports and Leicester City case

The Competition and Markets Authority (CMA) has confirmed its sanctions in a case involving Bury-based sports retailer, JD Sports Fashion, and Leicester City FC.

Earlier this month the competition watchdog announced its provisional findings and said it had fined the East Midlands football club £880,000 after admitting it restricted online sales of replica kits with JD Sports.

However, because JD brought the matter to the CMA’s attention, it escaped with no fine.

A CMA statement today said: “A fine of £880,000 has been imposed on Leicester City Football Club Limited, King Power International Co. Limited and V & A Holding Co. Limited. The penalty includes a discount to reflect the fact that these parties have settled the case with the CMA.

“JD Sports reported the conduct to the CMA and benefits from immunity to any fine under the CMA’s Leniency programme.

“Leicester City Football Club Limited have admitted participating in the alleged infringement in relation to the supply of Leicester City-branded products in the UK. Leicester City Football Club Limited (and its parent companies, King Power International Co. Limited and V & A Holding Co. Limited) have agreed to pay a fine including a discount to reflect the resource savings to the CMA generated by the company’s admission and its agreement to a streamlined administrative procedure.

“JD Sports also reported the alleged infringement under the CMA’s leniency policy and will benefit from immunity to any fine, provided it continues to cooperate and complies with the other conditions of the CMA’s leniency policy.”

The CMA launched its investigation on September 23, 2021, into suspected breaches of competition law by the two parties and their affiliates.

In response to today’s (July 31) announcement, JD Sports said: “JD Sports Fashion Plc notes the formal decision issued by the Competition and Markets Authority’s earlier today with respect to Leicester City-branded clothing, including replica kit.

“This confirms the statement of objections that the CMA announced on 5 July 2023.

“As noted previously, JD has provided complete and continuous cooperation with the CMA throughout its investigation and, by bringing the matter to the CMA’s attention, has been granted full immunity from any CMA fines.”