Watchdog Probes Fila Over Footy Products Deal
The Age
Friday August 3, 2001
The Australian Competition and Consumer Commission has launched an investigation into sporting goods manufacturer Fila and its distribution of AFL products.
The commission held talks in Sydney yesterday with Fila managing director Murray Hay after two months of inquiries involving current and former AFL licensees and football retailers.
Fila, which has sportswear deals with Essendon, Melbourne, Geelong, the Western Bulldogs and Adelaide, has incurred the wrath of lower-to-middle range sportswear manufacturers and some AFL outlets for insisting upon exclusivity at sporting goods outlets.
One company - Vivid - is believed to be closing its business at the end of the football season after nine years as an AFL licensee largely because of Fila's AFL distribution and one AFL store in Melbourne's Northland shopping centre has moved to restructure its outlet due to the changes in the AFL licensing agreements.
Two former significant AFL licensees, Crystal Craft and Australian Souvenirs and Marketing, are no longer operating partly due to the new practices.
The AFL's commercial operations general manager, Ben Buckley, said the league had scrutinised its contracts and was confident they did not contravene required business practices.
``We're not aware of the questions being asked of Fila but we understand the ACCC is looking at the distribution of AFL products," said Mr Buckley.
``The ACCC is not investigating the AFL in any way."
The ACCC has the authority to investigate and fine individuals.
The ACCC's Lyn Enright told The Age last night: ``We have certainly been talking with some of the traders. It's been a problem that keeps on cropping up about the arrangements that have been made."
Tom Fahy, from the commission's Melbourne headquarters, said: ``There is an investigation but we are not prepared to comment any further."
An adult Fila Essendon jumper retails at $99.95. The only choice now remaining for Bomber fans is to buy the cheaper product produced by long-time AFL manufacturer Burley Sekem for $79.95.
The Burley jumper, however, does not bear the official Essendon sponsors' logos and can only be purchased from Kmart stores.
Fila's new AFL distribution practices took place from the start of the 2001 season.
They followed threats from the company's former managing director, David Carney - a former colleague of Mr Buckley's at Nike - who said that the AFL's business practices were second-rate and that the AFL's refusal to grant broad licensing agreements to all club sponsors that would encompass on-field and off-field apparel would lead to the AFL losing big sportswear licensing agreements.
© 2001 The Age
