The Competition Appeals Tribunal has rejected Sports Direct’s request for an immediate injunction to stop Newcastle United’s exclusive deal with JD Sports. Despite this setback, the retailer still has the option to take the club to court over the matter at a later date if it chooses to do so.
Sports Direct had claimed that fans would be harmed if they were unable to buy cheaper kits from the retailer. However, the Tribunal stated that consumer benefit was considered a neutral factor in its assessment. The current kit supplier of Newcastle is Castore, but the club has agreed on a “multi-year partnership” with Adidas starting in the 2024-2025 season.
According to the judgement, there was no legitimate expectation from Sports Direct for continuity of supply from Castore. The Tribunal emphasized that suggesting an obligation on Newcastle United and Adidas to maintain supply to Sports Direct would hinder competition rather than enhance it. The refusal of the injunction was seen as making a speedy trial more urgent.
The ruling called for speedy and ideally agreed proposals from the parties, warning that the Tribunal would make its own proposals if necessary. This decision marks a significant development in the ongoing dispute between Sports Direct and Newcastle United over kit sales.
