Jim Ratcliffe. Photo: Photosport
All Blacks sponsor INEOS says it tried to reach a "sensible agreement" with New Zealand Rugby, which is suing the petrochemical giant over an alleged breach of its contract agreement.
NZ Rugby said on Tuesday it was launching legal action after INEOS failed to pay the first instalment of its 2025 sponsorship fee, alleging the global company owned by British billionaire Sir Jim Ratcliffe was backing out of the lucrative six-year deal which began in 2022.
INEOS responded with a statement on Wednesday, explaining that "cost-saving measures across the business" had prompted it to seek a change to its relationship with NZ Rugby, saying it had already contributed more than $NZ50 million in sponsorship.
Sarah Hirini and the Black Ferns Sevens during a training session in Vancouver. Photo: Photosport
The deal saw the company's branding appear on training and playing apparel of several teams, including the All Blacks and the Black Ferns.
"INEOS has greatly valued our sponsorship of New Zealand Rugby, having contributed over $US30 million ($NZ53 million) to the teams in recent years," the statement said.
"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."
Scott Robertson. Photo: Photosport
NZ Rugby didn't disclose any negotiations had taken place with INEOS when announcing it would pursue legal action.
"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," NZ Rugby said in its statement on Tuesday.
"NZR is actively pursuing new commercial opportunities and global interest in the All Blacks and other Teams in Black remains high."
INEOS' decision to back out of their agreement is not its first move to cut sports sponsorship costs in recent months.
In January, it parted ways with four-time Olympic champion Ben Ainslie, having backed the Britannia America's Cup sailing team since 2018.
Ben Ainslie, Skipper of Ineos Britannia, dock out at the final race of the 37th America's Cup, (race day 6), 19 October, 2024. Photo: Ineos Britannia - S. Enault/ America's Cup
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 defenders Team New Zealand.
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".
Ratcliffe is a co-owner of English Premier League club Manchester United, where he has overseen a restructuring of the fabled club that has led to hundreds of staff being made redundant.
In December, Ratcliffe warned more "difficult and unpopular decisions" would be taken to get the club back to where it needed to be.
