A high-profile corporate clash has erupted between Ineos, the petrochemical giant owned by Manchester United co-owner Sir Jim Ratcliffe, and New Zealand Rugby.
The dispute stems from Ineos’ decision to end its sponsorship of the All Blacks, a move that has triggered legal action from the rugby organization.
Ineos Cites European Economic Struggles
In a strongly worded statement, Ineos attributed its withdrawal from the six-year partnership—worth approximately £22 million—to the economic downturn in Europe.
The company cited soaring energy costs and extreme carbon taxes as key factors that have forced them to implement cost-cutting measures.
According to Ineos, these economic pressures have contributed to the “deindustrialisation of Europe,” impacting not only their business but the entire European chemicals industry.
New Zealand Rugby Pushes Back
New Zealand Rugby, however, is not taking the decision lightly.
The governing body has accused Ineos of failing to honor the latest installment of the sponsorship agreement, effectively attempting to walk away three years before the contract’s expiration.
In response, they have initiated legal proceedings and are seeking to remove Ineos branding from the iconic All Blacks jerseys immediately.
Manchester United Fans Take Notice
The controversy has raised eyebrows among Manchester United supporters, given Ineos’ increasing influence at Old Trafford.
Since acquiring a 28.94% stake in the club, Ratcliffe’s group has already implemented cost-cutting measures, including 250 redundancies, to streamline operations and free up funds for the first-team squad.
The decision to sever ties with New Zealand Rugby follows Ineos’ recent exit from its partnership with Olympic sailor Ben Ainslie’s America’s Cup team, suggesting a broader reduction in their sports sponsorship commitments.
Ineos Defends Its Position
After initially declining to comment, Ineos released a detailed statement defending its decision.
The company emphasized its financial contributions to New Zealand Rugby, claiming to have invested over $30 million into the teams.
While they sought a “sensible agreement” to modify the sponsorship terms, Ineos argues that New Zealand Rugby opted for litigation instead of negotiation.
Despite the legal tensions, the statement suggests discussions are ongoing between both parties.
What’s Next?
With the matter now in the hands of legal teams, the fallout from this sponsorship dispute could have significant implications for both Ineos and New Zealand Rugby.
Whether the two sides can reach an amicable resolution or if the battle will play out in court remains to be seen.
Meanwhile, Manchester United fans will be watching closely to see if Ineos’ financial strategies have any further impact on their club’s operations.
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