Rangers, JD Sports and Elite Sports accused of fixing kit prices

Rangers Football Club have been accused of conspiring to illegally fix the prices of club merchandise.

The Competition and Markets Authority (CMA) found the club colluded with retailers JD Sports and Elite Sports to keep prices of replica kits high from September 2018 to at least July 2019.

The CMA said the three parties could expect heavy fines if found guilty.

Rangers said they would review the provisional findings before submitting a response.

The UK competition watchdog found that Rangers were involved in the alleged collusion, but only to the extent of fixing the price of adult replica short-sleeved home shirts.

Michael Grenfell, executive director of enforcement at the CMA, said: "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."

The Scottish Premiership club said: "The statement of objections 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."

The parties involved now have the chance to make representation on the provisional findings before a final judgement is made.

The CMA said that at the time, Elite was the manufacturer of Rangers-branded clothing and also sold the products directly through its Gers Online Store, and later in shops across Glasgow and Belfast.

JD Sports was the only UK-wide retailer selling those Rangers club clothing items at the time.

The CMA claims that Rangers FC became concerned that at the start of the 2018-19 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 so-called retail partner.

The watchdog said they then conspired for JD to increase the price of the Rangers adult short-sleeved home replica shirt by nearly 10%, from £55 to £60, to bring it in line with Gers Online prices.

The CMA also believes that Elite and JD, this time without involvement from Rangers, worked together to fix the prices of Rangers-branded clothing - including training wear and replica kit - over a longer period.

It said this included the two firms aligning the amount and timing of discounts towards the end of the football season in 2019, to protect their profit margins at the expense of fans.

The CMA said Elite and JD had confessed to cartel activity and had since co-operated with the watchdog.

They could receive reduced fines if they continue to co-operate, according to the CMA.

Businesses found guilty of breaking competition law can be fined up to 10% of annual turnover.

JD Sports Fashion said it planned to book a hit of about £2m to cover any fine from the CMA and legal costs in its annual results for the year to 29 January, which it will release "shortly".