Newcastle kit deal will cost fans, says retailer

Newcastle United's refusal to let Sports Direct sell next season's kit would see fans having to pay more for shirts, the retailer has claimed.

The firm, owned by former Newcastle owner Mike Ashley, is seeking an injunction on the Magpies' exclusivity deal with JD Sports.

Sports Direct has taken its case to the Court of Appeal after the Competition Appeals Tribunal found against them ahead of a a full legal trial at a date yet to be set.

The firm's lawyer Tony Singla KC told appeal judges the deal was "anti-competitive" but Newcastle United strongly rejected the claim.

Mr Singla said Newcastle’s refusal to provide Sports Direct with the new Adidas kit would "distort competition in the retail market and ultimately lead to consumers paying high prices".

He said Newcastle’s approach was "an abuse" of the club’s "dominant position" in the market.

"Bluntly put, a Newcastle fan will not switch to buying an Arsenal jersey, even if faced with a price hike," he said.

The barrister told the hearing there was a "complete lack of transparency" over the JD Sports deal, which was done in October 2023 but which he claimed Sports Direct only learnt about in February.

He added "home of football" Sports Direct was "the largest sportswear retailer in the UK" with 488 stores, and had sold Newcastle’s kit "continuously for decades".

Mr Singla also said Newcastle fans' "alleged dislike" of Sports Direct's majority shareholder Mr Ashley was "massively overstated" and many bought shirts from the retailer.

He said an injunction needed to be in place by 17 May to allow time for the delivery of the new Adidas manufactured kit before its expected launch on 7 June.

Thomas de la Mare KC, representing Newcastle United, said the Competition Appeals Tribunal reached a "fully justified" conclusion.

He said Sports Direct had in recent years "enjoyed exclusive retailing rights" with current Newcastle manufacturer Castore, which had "no material distinction" between the exclusivity now offered to JD Sports.

"Sports Direct in effect seeks an injunction to preserve the preferential arrangements put in place for it during the period when Mr Ashley owned both it and the club, even after his sale of the club," Mr de la Mare said.

He said competition would be "preserved", and added: "Under the new arrangements there will be, at all times, three independent competing retailers, the club, Adidas and JD Sports."

Mr de la Mare said it was "entirely fanciful" to suggest an absence of kit at Sports Direct stores would make consumers less likely to return and buy other products.

He also said many Newcastle fans felt a "deep and lasting antipathy" towards Mr Ashley and Sports Direct as their relationship with the club's former owner was "toxic".

Mr de la Mare told judges the kit deal was "nowhere close" to an "elimination of all competition".

The hearing before Sir Geoffrey Vos, Sir Julian Flaux and Lady Justice Andrews, which is due to conclude on Thursday, continues.

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