New Zealand Rugby has announced it is taking legal action against INEOS, the minority owner of Manchester United.
New Zealand Rugby has accused the global chemical company of failing to pay the first instalment of the 2025 sponsorship fee, which is part of the company’s six-year agreement with the rugby organisation.
The two entities confirmed a six-year sponsorship deal in 2021, which is approximately worth £22m and places INEOS’ branding on the back of the playing shorts and the front of the training kits until 2027.
Following the failure of the payment, the All Blacks has stated that it has no choice but to take legal action and intends to remove INEOS logos from its kits ahead of the next round of fixtures.
“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,” a statement read.
“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.
“New Zealand Rugby 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.”
A page on the company’s website that used to explain the partnership with New Zealand Rugby now reads “page not found”.
INEOS has labelled the lawsuit as unfortunate, suggesting that the company was attempting to discuss a new “sensible agreement” due to several issues such as extreme carbon taxes and high energy costs.
The company said: “INEOS has greatly valued its sponsorship of New Zealand Rugby having contributed over USD $30m to the teams in recent years.
“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 has chosen to pursue legal action against their sponsor.”
INEOS’ sporting portfolio
INEOS has been involved in many different sports over the years, including cycling, sailing, football and F1.
Manchester United became the company’s latest project in December 2023, when its CEO Sir Jim Ratcliffe purchased a minority stake in his boyhood club. While Manchester United marked the company’s largest sporting asset, at the time of the purchase it was unclear how it would affect its other sporting arrangements.
The Manchester-born billionaire acquired 27.7% of the club for approximately £1.2bn and committed to investing $300m (£237m) as part of the agreement. Last December, Ratcliffe invested an additional £79m into the club, increasing his ownership stake and transferring shares from himself to INEOS.
Since taking over the football operations of the club, Ratcliffe has raised ticket prices, sacked a manager and made a significant amount of staff redundant, which he attributed to cutting costs.
Recently, Ratcliffe shocked the sailing world. He has supported Ben Ainslie’s team for the past two America’s Cups, investing approximately £200m over that time. In an interview with the Telegraph, Ratcliffe said that this support would continue, however, last month the outlet revealed Ratcliffe has gone back on this statement.
As for now, it remains unclear whether INEOS and the All Blacks will continue working together. However, the company asserts it remains “in ongoing discussion with New Zealand Rugby.”
