Federation alleges chemicals giant breached contract after walking away from its deal three years early.
- Ineos signed six-year deal reportedly worth NZ$8m per year
- NZR said Ineos failed to pay first instalment of 2025 fee
New Zealand Rugby (NZR) is suing Ineos after the petrochemicals titan allegedly walked away from its deal three years early.
Ineos, which is owned by Manchester United co-owner Jim Ratcliffe, signed a six-year contract with NZR that began in 2022.
The deal, reportedly worth around NZ$8 million (US$4.52 million) per year, granted Ineos branding rights on the playing shorts and on the front of training jerseys worn by the federation’s teams, including the All Blacks, the Black Ferns and both sevens teams.
However, the NZ Herald reports that relations between NZR and Ineos became ‘severely strained’ eight months ago and have since collapsed.
A statement from NZR said: ‘New Zealand Rugby is disappointed that Ineos has breached its sponsorship agreement. 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.
‘NZR is actively pursuing new commercial opportunities and global interest in the All Blacks and other teams in black remains high. We are committed to being world-class on and off the field and deliver unique value to sponsors through our iconic brands.’
Ineos has yet to respond to NZR’s statement at the time of writing.
Losing its deal with Ineos could be a significant blow for NZR, which posted a NZ$9 million loss (US$5.08 million) for the 2023 financial year. The federation launched a national plan for financial sustainability in October, with the goal of creating a financial model to support grassroots and professional rugby.
Last month, Ineos confirmed it would withdraw from investing in Ben Ainslie’s America’s Cup team and instead launch its own syndicate for the next edition of race.
In response, Ainslie’s team said it was ‘astounded’ by Ineos’ decision to compete for the 38th America’s Cup. It added that the decision ‘raises significant legal and practical obstacles for them that will play out in the coming days and weeks’.
As well as holding a stake in Manchester United, Ineos also owns Ligue 1 club Nice and Swiss Super League team Lausanne-Sport. It also part-owns Formula One outfit Mercedes and is a key sponsor of the Ineos Grenadiers cycling team.
SportsPro says…
Like many rugby organisations at the moment, NZR finds itself in a challenging financial position. The loss of a key sponsor will not help, and will hasten the need to add more commercial partners to replace Ineos.
Ineos has established a major presence in sport over recent years. However, it appears to be divesting its portfolio, given Ratcliffe’s increasing involvement in running Manchester United. Ineos Grenadiers chief executive John Allert warned last month that the team would need to look for additional funding, saying that Ineos did not want “to spend more money”.
It may be a sign that Ratcliffe and Ineos will put more resources into Manchester United. The Premier League outfit, who are mired in 13th place in England’s top-flight, are currently weighing up the build of a new 100,000-seater stadium to replace Old Trafford.
Credit: https://www.sportspro.com/news/new-zealand-rugby-ineos-lawsuit-sponsorship-contract-payment-february-2025/