Ineos blames cost-cutting for legal battle with NZ rugby

Beauden Barrett wearing an Ineos-sponsored New Zealand training kit

Ineos has blamed "cost-saving measures" across its business for an alleged "breach" of its sponsorship of New Zealand Rugby (NZR), a move that has led to legal action from the governing body.

The British petrochemical firm, which co-owns Manchester United as part of its sport portfolio, has walked away early from its sponsorship deal of NZR.

In 2021 Ineos, which is chaired by Sir Jim Ratcliffe, agreed to become performance partner of NZR from 2022 to 2027.

The deal included Ineos branding on the back of playing shorts and on the front of training jerseys for the nation's teams, including three-time World Cup winners the All Blacks and six-time women's world champions the Black Ferns.

In a statement on Tuesday, NZR said Ineos had "failed to pay the first instalment of the 2025 sponsorship fee, confirming its decision to exit our six-year agreement".

It added: "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 says it has contributed more than 30m US dollars (£24m) to the rugby teams in recent years.

Citing the struggling chemicals industry in Europe because of "high energy taxes and extreme carbon taxes", along with "the deindustrialisation of Europe", Ineos said in a statement: "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. We remain in ongoing discussion."

NZR rugby added it was "actively pursuing new commercial opportunities and global interest in the All Blacks and other teams in black remains high".

All change for Ineos' sport portfolio

Last month, Ineos parted ways with four-time Olympic champion Ben Ainslie, having backed the Britannia America's Cup sailing team since 2018.

Ineos said in a statement it could "not find agreement" with Ainslie on "terms to move forward" after last year's event in Barcelona, which was won by New Zealand.

Ineos plans to compete in the next America's Cup under the Britannia name.

Ainslie's team said in response they were "astounded" by Ineos' future plans for the America's Cup and that the decision "raises significant legal and practical obstacles for them".

Ineos confirmed a deal worth about $1.3bn (£1bn) for a stake in Manchester United in February 2024.

The company has overseen a restructuring of the club that has led to hundreds of staff being made redundant while it has been criticised for raising matchday ticket prices to £66 per game, with no concessions for children or pensioners.

In December, Ratcliffe warned more "difficult and unpopular decisions" would be taken to get the club back to where it needed to be.

Rumours are rife at Old Trafford that more staff jobs are about to be scrapped. United are not denying this could be more than 100 and possibly as many as 200.

However, club sources argue that Ratcliffe has already pumped in $300m (£241m) to help pay for extensive improvements to United's Carrington training ground.

The company's sport portfolio also includes ownership of Swiss football club FC Lausanne-Sport and French side Nice. It is also a co-owner of F1 team Mercedes and runs the Ineos Grenadiers cycling team.

Last month the Grenadiers said they were searching for new partners to join Ineos in order to keep pace with competitors after suffering their worst season in 2024.

"Ineos don't want to spend more money," confirmed John Allert, Ineos Grenadiers CEO.

In 2021, Ineos' director of sport Sir Dave Brailsford hailed the partnership with NZR.

"The integration of the Ineos brand on this iconic kit symbolises our partnership to share best practice and collaborate on performance innovation," he said.

"I am looking forward to integrating the players and team at New Zealand Rugby into Ineos to support their ambitious performance goals and apply the knowledge and expertise found across all of our teams."