AFL deal to push up cost of Dimmeys gear

Andrew Mathieson
The addition of an AFL badge to Geelong discount retailer Dimmeys’ range of jumpers in club colours will leave families paying more for their footy gear, the company has admitted.
The range, which also includes T-shirts, windcheaters and tracksuits, will have to include the AFL logo at additional cost after Dimmeys agreed in an out-of-court settlement to stock only AFL-approved merchandise.
The AFL last year threatened to take Dimmeys to court after discovering it was selling unapproved clothing closely resembling club merchandise.
Dimmeys has since pulled the clothing off store racks.
Dimmeys managing director Doug Zappelli said the company always intended to withdraw the generic-brand jumpers.
“We always have tried to meet the AFL licensing requirements,” he said.
“We’ve been trying to get a licence to sell AFL merchandise for many years and now they’ve agreed to give us one.”
Mr Zappelli said AFL heads including chief executive Andrew Demetriou were “very amicable” in a conciliatory meeting that prevented legal action, which had been scheduled to start in court last month.
But Dimmeys would not have a licence for its approved clothing for “a few months”.
Mr Zappelli said Dimmeys was still in talks with the AFL to “negotiate a price” for the range but expected the footy gear to rise no more than 25 per cent.
He blamed the weakening Australian dollar for the price rise.
“We’re still in the cheaper end of the market,” Mr Zappelli said.
“We certainly won’t be selling them for $100 or whatever they sell for in some other stores.”
Mr Zappelli said prices could range from $30 to $50 for footy jumpers.
The unauthorised jumpers sold for $10 to $30.
“Knowing our normal margin, we’ll be much cheaper than our competitors,” he said.
The Malop Street retailer has always targeted low-income families who could not afford the high price tags at football clubs and sports stores.
Mr Zappelli was keen to negotiate a franchise deal with Geelong Football Club to sell cheaper jumpers than currently available.
He said a 10-per-cent royalties deal could earn the club around $20,000 from sales worth more than $3 million.