New Zealand Rugby sues INEOS over non-payment of All Blacks sponsorship

New Zealand Rugby has revealed that it is taking legal action against the INEOS Group - for alleged breach of a $48 million partnership deal - following non-payment of the first tranche of this year's sponsorship.

The UK-based company's agreement with NZ Rugby was worth $8 million a year for six years.

Covering both the mens and womens All Blacks teams was one of the flagship sponsorship deals for the petrochemical conglomerate.

New Zealand Rugby said in a statement last Friday, that it was "left with no option" but to launch legal action over what it says is a breach of sponsorship agreement.

In the statement NZ Rugby alleged the company owned by British billionaire Sir Jim Ratcliffe had ended its six-year sponsorship deal which began in 2022.

New Zealand news sources had it that INEOS was wanting to exit from the last three years of the six year deal, and that triggered the non-payment of the first instalment.

UK-based SportBusiness reported on 24th January that "INEOS, led by Sir Jim Ratcliffe, is currently undergoing a review of its sports investments amid a plan to shed what it considers “non-core assets”, according to sources close to the group."

A day earlier INEOS Britannia, the 2024 America's Cup Challenger announced that it was splitting from its skipper Sir Ben Ainslie, and his Athena Racing team.

Reports in financial media are also questioning INEOS’ financial health with its debts forecast to reach almost US12.5 billion this year with two leading credit ratings agencies issuing advisories over the group’s status.

INEOS’ sport division oversees its interests in football - where it has a minority stake in Manchester United of the English Premier League - sailing, Formula 1, cycling and running. It’s website has dropped its reference to rugby.

Sir Jim Ratcliffe is currently also overseeing a range of cost-cutting and redundancies at Manchester United.

Image credit: Christchurch City Council.