May 24, 2024

Newcastle United will be overjoyed to learn that JD Sports would pay a large sum for the rights to exclusively sell new Adidas shirts next season.

The announcement came from a Competitions Appeal Tribunal panel, following Sports Direct’s unsuccessful attempt to persuade Newcastle to sell next season’s at the shop controlled by former Toon owner Mike Ashley.

The panel, led by Sir Marcus Smith, decided that there was ‘no reasonable or justifiable expectation on the side of Sports Direct of continuity of supply’.

Sports Direct still has the option of going to court if they so desire.

JD Sports will pay ‘handsomely’

This is taken from the CAT case judgement. “The new owners of Newcastle United FC are endeavouring to restructure the NUFC replica kit business of the club,” .

“That is no minor task, requiring a significant investment of time, effort, and money. As a result, existing connections (such as those with Castore) must be dissolved, and new ones (such as those with JD Sports and Adidas) formed.

“For example, we noted that the new arrangements provide JD Sports with some exclusivity in the UK market. JD Sports pays significantly for this right, and granting the injunction will materially reduce JD Sports’ exclusivity.”

Adidas and JD Sports deal will help with FFP

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Newcastle announced in August 2023 a multi-year agreement with Adidas to become the club’s official uniform partner beginning in 2024/25.

According to the Shields Gazette, the lucrative arrangement will cost Newcastle £40 million per season, which is enough to sign at least one quality player.

Although we do not have exact figures for the JD Sports transaction. We believe it may be seven digits.

Despite the agreement, Newcastle merchandise will still be available in the club shop.

 

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