THE Competition & Markets Authority has provisionally ruled that Rangers, alongside sports retailers Elite and JD Sports, broke competition law by fixing the sale prices of certain club branded clothing products.  

This is NOT the final stage in the process and the CMA themselves state: “No assumption should be made at this stage that any infringement has occurred.”

Rangers will now have the chance to make representations in response to the allegations and are still confident of their position. 

But what this could mean for the club going forward?

The Rangers Review has compiled a list of potential questions and answers to help decipher this complex situation. 

Who are the CMA? 

The Competition & Markets Authority are a non-ministerial government department with staff in London, Edinburgh, Belfast and Cardiff. Their core aim is to “promote competition for the benefit of consumers, both within and outside the UK.” Their board features a familiar face in SPFL chairman Murdoch McLennan, who was appointed on April 1st 2022. 

What are their findings? 

1. Elite Sports and JD Sports fixed the retail prices of a number of Rangers-branded replica kits and other clothing products from September 2018 until at least July 2019. 

2. Rangers FC also took part in the alleged collusion but only to the extent of fixing the retail price of adult home short-sleeved replica shirts from September 2018 to at least mid-November 2018. All 3 parties allegedly colluded to stop JD Sports from undercutting the retail price of the shirt on Elite’s Gers Online store. 

What does this specifically relate to? 

The investigation surrounding Rangers itself revolves around the purchase of around 2000 shirts from Elite by JD Sports. The popular high-street retailer wanted to pepper shirts around their stores throughout the UK but they were initially selling the items for £55 rather than the £60 being charged by Elite.  

What is the preliminary CMA version of events? 

They detail the following: “At the time, Elite was the manufacturer of Rangers-branded clothing and also sold Rangers-branded products directly through 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 Competition and Markets Authority (CMA) alleges that Rangers FC became concerned about the fact 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 ‘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 is also concerned 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 at the expense of fans.” 

What have they said? 

Michael Grenfell, Executive Director of Enforcement at the CMA, commented: “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.” 

What is the legal issue under discussion? 

Chapter I of the Competition Act 1998 (CA98). 

The Chapter I prohibition in the Competition Act 1998 stops agreements between businesses which stifle natural marketplace competition, affecting the cost of goods to the person on the street. 

So this is final then? 

No. This is just a provisional decision at the moment.

Rangers now have the opportunity to present their case via written and oral representations. These will be taken into account by a CMA case decision group who are separate from the original investigators and have had no involvement in the case so far. 

What have Rangers said in response? 

A club statement 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.” 

How have JD Sports and Elite reacted? 

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.” 

If Rangers are indeed found to have made an infringement, how big a fine could they face? 

Businesses that breach UK consumer protection laws will be subject to fines of up to 10% of their annual global turnover.

Given Rangers' turnover fluctuates depending on sporting performance, we have asked for clarity from the CMA over which year's accounts would be used as the basis of any fine. We are awaiting their response.

Did Rangers benefit from this financially? 

It’s the Rangers Review’s understanding that the club themselves did not financially benefit from this situation and the final ruling in the case will clearly state this. 

There is confidence within the club they will be cleared of any wrongdoing in this matter when it reaches a final stage of assessment.