Man Utd owners INEOS hit back after New Zealand Rugby's legal action

Manchester United owners INEOS have hit back after New Zealand Rugby launched legal action against their former sponsor for alleged breach of contract.

New Zealand Rugby says the global chemicals producer, owned by British billionaire Sir Jim Ratcliffe, walked away from a six-year deal that was signed in 2021 and due to run from 2022-2027.

The deal included INEOS branding on the back of playing shorts and on the front of training jerseys for the All Blacks and other national men's and women's rugby teams.

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An INEOS statement read: "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 have chosen to pursue legal action against their sponsor. We remain in ongoing discussion with New Zealand Rugby."

New Zealand Rugby said INEOS informed them at the end of January that they intended to exit the agreement effective from January 1.

AN NZR statement read: "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."

The news comes after INEOS backed Britain's America's Cup bid last year but announced in January it had split with skipper Ben Ainslie's crew which lost 7-2 to New Zealand in the final series.

Ratcliffe purchased a minority stake for £1.25bn to buy a 27.7 per cent stake in Manchester United last year, that was increased to 28.94 per cent - a further £79m - in December.

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