Nike is being investigated by the Competition Commission over replica Springbok jerseys

Nike in essence has only allowed a very limited selection of other stores to stock the authentic replica jersey. Picture: Sportsmans Warehouse website

Nike in essence has only allowed a very limited selection of other stores to stock the authentic replica jersey. Picture: Sportsmans Warehouse website

Published Sep 22, 2023

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There is no doubt that the Rugby World Cup has given most South Africans a rush of patriotism and pride.

If you are looking to get the SA Rugby national team’s replica jersey to show your pride and support, it may take a while.

The authentic Nike Springbok Rugby replica jersey is only available at certain stores and in a limited quantity, due to a rights issue.

In essence, Nike has only allowed a very limited selection of other stores to stock the authentic replica jersey.

These specific stores include Total Sports, Studio 88 and Sportsmans Warehouse.

As a result, the Competition Commission has launched an investigation into Nike after a number of retailers complained about Nike’s refusal to allow them to sell the jerseys.

Siya Makunga, a spokesperson for the Competition Commission said that he can confirm that an investigation into Nike has begun, according to Daily Maverick.

The complaint was lodged on September 5.

NIKE 6 YEAR CONTRACT

In September 2022, SA Rugby announced that they had given Nike a six-year contract to supply the team with playing kits and additional items and apparel.

Jurie Roux, CEO of SA Rugby said: “We’re delighted to welcome Nike on board. It is an iconic global brand whose vision for their Springbok partnership impressed us from our first conversation”.

In a statement at the time, SA Rugby said: “Nike will provide playing kit as well as off-field apparel and footwear for the Boks as well as Springbok Women, the men’s and women’s sevens teams and Junior Boks.”

The identity of the retailers who have asked for the investigation has been withheld, so there would be no chance of victimisation, according to the SABC.

The retailers are accusing Nike of violating the Competition Act. They argue that Nike is doing this by agreeing to give exclusive rights to only certain stores. This was not the arrangement or agreement done in previous years with Asics, the previous apparel supplier of SA Rugby.

In July 2023 Sports Lens compiled a report on Nike and the band’s dominance in the sportswear industry.

According to the research, “Nike holds the biggest share of the global sportswear market, generating more revenue than any of its competitors”.

The report states that Nike has a media Impact value of $2.6 billion.

The brand sponsors some of the biggest and most well-known professional athletes in the world, including Cristiano Ronaldo and Serena Williams, to name a few. Nike also sponsors and provides apparel for a number of national sports teams, including the Brazilian national soccer team, the English national football team and many more.

According to the research these lucrative deals have helped “Nike’s apparel sales revenue to grow by a massive 50% in the past six years, rising from roughly $9bn in 2016 to $13.5bn in 2022”.

At 3.30pm, Nike’s share price was $91.92 (R1 723,14).

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