New Zealand Rugby (NZR) has taken legal action against billionaire Manchester United boss Sir Jim Ratcliffe’s company INEOS over a sponsorship dispute.
Ratcliffe’s chemical company signed a six-year deal with NZR in 2021 which saw INEOS branding appear on the back of playing shorts and on the front of training jerseys on All Blacks, Black Ferns and Māori All Blacks apparel.
However, an alleged failure to make their first fee payment of 2025 and attempt to terminate the deal early has prompted NZR to take action.
“New Zealand Rugby is disappointed that INEOS has breached its sponsorship agreement,” NZR said in a statement on Tuesday.
“Most recently, it failed to pay the first instalment of the 2025 sponsorship fee, confirming its decision to exit our six-year agreement.
“Having learned of INEOS’ decision to walk away three years early, we have moved to protect the interests of New Zealand Rugby and the wider game. We have been left with no option but to launch legal proceedings to protect our commercial position.”
INEOS responded by saying they had hoped for a “sensible agreement with the All Blacks” after being impacted by significant business challenges including high energy costs and extreme carbon taxes.
“INEOS has greatly valued our sponsorship of New Zealand Rugby, having contributed over $30 million to the teams in recent years,” the company said in a statement.
“However, trading conditions for our European businesses have been severely impacted by high energy costs and extreme carbon taxes, along with much of the chemicals industry in Europe, which is struggling or shutting down.
“We are witnessing the deindustrialisation of Europe. As a result, we have had to implement cost-saving measures across the business. We sought to reach a sensible agreement with the All Blacks to adjust our sponsorship in light of these challenges.
“Unfortunately, rather than working towards a managed solution, New Zealand Rugby have chosen to pursue legal action against their sponsor.
“We remain in ongoing discussion with New Zealand Rugby.”
As well as owning British professional cycling team Grenadiers, INEOS also backed Britain’s America’s Cup bid last year but announced in January it had split with skipper Ben Ainslie’s crew which lost 7-2 to New Zealand in the final series.
Information from Reuters contributed to this report
Source: espn.com