Retail tycoon and former Newcastle United owner Mike Ashley is suing the club over next season’s kit.
The Sports Direct owner has filed a claim in the Competition Appeal Tribunal saying the club is ‘abusing its dominant position in the market’ by blocking the retailer from selling its new Adidas kit for the 2024-25.
His remarks follow reports that rival sporting retailer JD Sports was given exclusive rights to sell the kits, effectively excluding Sports Direct from the market, claim documents show.
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The claim Sportsdirect.com submitted says the sale of replica kits is vital in attracting shoppers to sports retailers.
By not supplying Sports Direct with 50,900 units of Newcastle merchandise, the retailer said it is missing out on profits equating to £1.5m.
According to the document, Newcastle United’s former manufacturer, Castore Ltd, regularly provided the club’s replica kit to Sports Direct, and the company had “every expectation” the supply would continue.
But the club recently terminated its agreement with Castore and licensed Adidas as its exclusive manufacturer.
Under the new arrangements, the claim suggests, only Adidas, the club and JD Sports would be able to sell the kits.
Documents submitted ahead of a hearing next month suggest the exclusivity arrangements effectively cut Sports Direct out in favour of its rival and represent a breach of the Competitions Act.
The claim asks for an injunction to stop the club “continuing to abuse its dominant position by adopting a strategy of excluding Sports Direct from the market for the retail supply of the club’s replica kit”, and to prevent it from “including unlawful exclusivity provisions” in contracts governing the distribution and sale of replica kits.
Newcastle have until 28 March to file a response before a hearing on 9 April. The claim also asks for damages to be paid.
The legal action marks the most recent confrontation between Ashley and Newcastle’s new owners.
Previous disputes have revolved around the terms of a loan used for the takeover and the removal of Sports Direct branding at St James’ Park.
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