OFT may fine firms over football strip pricing

The Office of Fair Trading is poised to rule that 10 companies including JJB Sports and Manchester United fixed the price of replica football shirts made by Umbro. The move could see the companies fined up to 10 per cent of their UK turnover.

The OFT first announced its investigation in May and yesterday said it had sent the companies involved additional evidence on price fixing.

The other companies involved include JD Sports, Sports Soccer, Blacks Leisure and the Football Association. Debenhams has been dropped from the action. The companies have until January to make their final submissions. The OFT is expected to deliver its ruling next spring.

Manchester United and JJB denied any involvement with price fixing with JJB saying it had led the way in lowering prices by cutting football shirt prices to £39.99.

JJB shares fell 5 per cent to 179p on the OFT's announcement which overshadowed the appointment of Tom Knight as chief executive after the death of Duncan Sharpe last month.

Mr Knight previously ran the sports and fashion interests of Blacks Leisure. He was hired as operations director last month with specific responsibility for icon, a new format being trialled by JJB to offer fashion clothing from its smaller, high street stores. Mr Knight will be paid a salary of about £300,000.

He said he was looking forward to working with Dave Whelan, JJB's founder and chairman. "I've known Dave for 25 years from when I used to work for Adidas and used to call on him as a supplier. From 1983 I knew him as a competitor when I set up Monument Sports which was sold to Blacks Leisure in 1987."

Mr Knight said he was confident the surprise acquisition of TJ Hughes discount stores could be made to work. "We think we can improve the TJ Hughes business and we'll be starting soon on a number of refurbishments."