The Competition Appeals Tribunal has rejected Sports Direct’s request for an immediate injunction to stop Newcastle United’s exclusive deal with JD Sports. This move was claimed to be harmful to competition by the sports retail giant. Despite this setback, Sports Direct still has the option to take the club to court at a later date.
The firm’s lawyers had argued that not allowing them to sell cheaper shirts would harm fans, but the judgement stated that consumer benefit was not a deciding factor in the assessment. Newcastle United’s current kit is produced by Castore, but the club has agreed to a “multi-year partnership” with Adidas starting in the 2024-25 season. The judgement made it clear that there was no obligation for Newcastle United and Adidas to ensure that supply to Sports Direct would be maintained over time, as this would restrict competition rather than enhance it.
The refusal of the injunction has made a speedy trial more urgent, and the Tribunal expects proposals from both parties in a timely manner. If no agreement is reached, the Tribunal will make its own proposals.
