Ineos has blamed high energy costs and carbon taxes in Europe for attempting to amend a sponsorship with the New Zealand rugby team after the All Blacks accused the Sir Jim Ratcliffe-helmed group of breaching a multimillion-dollar partnership agreement.
New Zealand Rugby (NZR), which in 2022 entered into a six-year partnership with Ineos, says the chemicals group has ended the deal three years early and failed to make its first scheduled payment for 2025.
The deal, reportedly worth NZ$ 8 million ($4.5 million) per year to the All Blacks, was intended to allow Ineos to share knowledge from its other sporting ventures, which include cycling, sailing, and football.
Ineos, however, says it is seeking an adjustment owing to cost-cutting measures.
In a statement shared with Fortune, an Ineos spokesperson said it “has greatly valued our sponsorship of New Zealand Rugby, having contributed over $30 million 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.”
The spokesperson added: “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.”
Ineos has previously warned the European chemicals industry faces “extinction,” blaming high energy costs and what it regards as punitive taxes on fossil fuels.
Ineos’s sporting partnerships
Ineos’s partnership with NZR formed part of the group’s wider sporting portfolio.
At the time of the partnership’s announcement in 2021, Ratcliffe said he was delighted to work with the All Blacks.
“They have consistently shown the grit and determination needed to perform at the highest level of sport and there will be a lot that we can learn from them,” said Ratcliffe.
Ineos’s logo features on the team’s training jersey and on its matchday shorts. On its YouTube page, Ineos has shared several videos that showcase its partnership with the All Blacks.
However, the only trace of Ineos’s rugby links on its sports webpage now leads to a “Page not found” response. The Wayback Machine shows Ineos previously used the page to call itself an “Official Performance Partner” for NZR, with the last reported citing of the page in its previous foom recorded on December 24 last year. It is not clear when the site was changed.
“New Zealand Rugby is disappointed that INEOS has breached its sponsorship agreement,” NZR said in a statement on Tuesday, as first reported by the Telegraph.
“Most recently, it failed to pay the first installment 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.”
Ratcliffe also owns the Grenadiers cycling team and the Ineos Britannia sailing team, while he also acquired a minority stake in Manchester United Football Club last year.
In January, Ineos Britannia made a surprise move to pull out of its partnership with sailer Ben Ainslie after his failure to win the America’s Cup in October.
Ainslee’s team said it was “astounded” by the news after Ineos invested $124 million in the agreement. It added that the move created “significant legal and practical obstacles” for Ineos.