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Ineos and New Zealand Rugby Settle Sponsorship Dispute
A resolution has been reached between Ineos, co-owner of Manchester United, and New Zealand Rugby (NZR) regarding a disagreement over a sponsorship contract. The settlement concludes legal action initiated by NZR against the chemicals company owned by Sir Jim Ratcliffe.
Background of the Sponsorship Agreement
In February, New Zealand Rugby, the national body overseeing the All Blacks, announced it had commenced legal proceedings against Ineos. The dispute arose from NZR’s claim that Ineos had failed to make the initial payment for 2025, part of a previously agreed six-year sponsorship arrangement established in 2021. Ineos cited “cost-saving measures” as the reason for seeking to adjust the sponsorship, attributing these measures to the impact of “high energy costs and extreme carbon taxes” on its European operations.
Legal Action and Confidential Settlement
Late on Monday, both organizations released a joint statement confirming the settlement. The statement indicated mutual satisfaction with the outcome, although specific details of the agreement will remain confidential. Both parties expressed a shared desire to move forward constructively.
NZR’s Initial Response to Breach of Contract
NZR’s February statement detailed their disappointment with what they considered a breach of the sponsorship contract by Ineos. They stated Ineos had not only missed the first 2025 payment but also communicated their intention to withdraw from the six-year agreement prematurely. NZR explained that the legal action was a necessary step to protect the financial interests of New Zealand Rugby and the broader sport, stating they were “left with no option” but to pursue legal avenues to safeguard their commercial position.
Ineos’s Explanation for Adjusting Sponsorship Terms
In response, Ineos issued a statement outlining the challenging trading conditions faced by its European businesses. The company highlighted the severe impact of high energy costs and substantial carbon taxes on the European chemicals industry, leading to widespread economic difficulties and factory closures in the sector. Consequently, Ineos stated they had to implement cost reductions across their business portfolio. They conveyed that they had attempted to negotiate a revised sponsorship agreement with the All Blacks to reflect these economic headwinds. Ineos expressed disappointment that New Zealand Rugby opted for legal action rather than seeking a mutually agreeable solution.