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Newcastle's Adidas kit launch reveal and 'toxic' claim made at tribunal as Justin Barnes watches

Newcastle United's legal team and representatives for Sports Direct have clashed at a Competition Appeal Tribunal hearing in London as former owner Mike Ashley looks to take out an injunction

Sports Direct are the 'gorilla in the marketplace' as former Newcastle United owner Mike Ashley attempts to prevent the 'unlawful' sale of the Magpies' new kits exclusively through JD Sports.

Sports Direct are seeking an injunction from the Competition Appeal Tribunal and want to stop Newcastle from selling next season's new Adidas kits exclusively through their rival retailer. Among those in attendance in London for Tuesday's ongoing application hearing are John Devine, Newcastle's general counsel; Keith Bishop, Ashley's head of PR; and Justin Barnes, the billionaire's right-hand man, on a day it emerged during proceedings that the club's home kit will be released on June 7 before the away kit and third kit follow in July and August respectively.

Thomas de la Mare, the barrister representing Newcastle, pointed out that such 'tripartite arrangements' between clubs, manufacturers and retailers had been in the market for up to a decade and had 'never attracted any attention' from the Competition and Markets Authority. The tribunal heard that Celtic, Leicester City and Leeds United were among those clubs who had adopted such arrangements with Adidas and JD Sports while the Scottish FA and Welsh FA also operate within such a model.

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Mr de la Mare referred to Sports Direct as 'the gorilla in the marketplace' and later said the reputation of the retailer with Newcastle fans was 'for want of a better word toxic'.

"Despite the fact that Sports Direct has the wealth of data that it's identified, selling every kit going, having done so for decades, it has not advanced a scintilla of evidence to show that arrangements of this kind actually produce meaningful effects on competition and that's what you would expect it would be able to do in circumstances where the perfect experiment if you like of Leicester Leeds, Celtic, the Scottish FA has preceded it," he said. "Instead they launch this case against the club that was formerly in joint ownership - not against any of the other clubs who have adopted these arrangements for a number of years beforehand."

Tony Singla, representing Sports Direct, had argued that the retailer had 'very striking facts at this very early stage of these proceedings' in his opening submission and went on to say such Newcastle's aforementioned arrangement would be 'unlawful'.

"We've got the largest retailer in the UK, the so-called home of football, supplying all of the top league's replica kits, including Newcastle, for decades," he said.

"They are told, for the purpose of next season, that you will not be receiving our kit anymore and what's more they are not bringing the operations entirely in-house. They are doing a deal with the other main replica kit dealer, JD, and the material at this very early stage suggests that the only reason that Sports Direct is being cut out is because of the concern about its discounting practices.

"That is consumer harm. Discounting practices means cheaper replica kit in Sports Direct stores. For the tribunal to have that sort of evidence at this very stage, we say, makes this case rather straightforward."

The tribunal continues.

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