New Zealand Rugby enters legal battle with sponsor Ineos over alleged breach of contract

New Zealand Rugby's partnership with Ineos began in 2022. Photo / Photosport

New Zealand Rugby (NZR) is suing Ineos for an alleged breach of contract that will leave the national organisation exposed to potential multimillion-dollar losses.

NZR informed the provincial unions today it was launching legal action after Ineos, the world’s largest chemical producer owned by British billionaire Sir Jim Ratcliffe, abruptly walked away from its lucrative sponsorship agreement three years early and failed to make its first payment in 2025.

Ineos agreed a six-year sponsorship agreement with NZR in 2022. Its branding is visible on the All Blacks, the Black Ferns and both sevens sides’ jerseys, but with Ratcliffe now wanting out immediately that branding will be removed.

The stoush could have widespread ramifications for the New Zealand rugby ecosystem with financial challenges already prevalent throughout the game, particularly at the grassroots level, and Ineos among the three major sponsors alongside Adidas and Altrad.

The Ineos deal is believed to be worth $8 million a year to New Zealand Rugby.

One senior All Black previously raised concerns about wearing the petro-chemical company’s logo on their playing and training kit but that is not thought to be a major factor in the sponsorship breakdown.

The Herald understands the relationship between NZ Rugby and Ineos became severely strained eight months ago and has deteriorated since.

In a statement released to the Herald, NZR said it had no choice but to launch legal proceedings against Ineos.

“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.

“NZR is actively pursuing new commercial opportunities and global interest in the All Blacks and other teams in black remains high. We are committed to being world-class on and off the field and deliver unique value to sponsors through our iconic brands.

“Rugby in New Zealand enjoyed a strong year in 2024 with growth in community rugby through to the continued success of our free digital streaming service NZR+. We look forward to building on that with new partners and fulfilling our purpose of seeing rugby thrive.”

Ineos, the co-owner of Manchester United, is also in an America’s Cup legal battle with Sir Ben Ainslie, skipper of the British team it sponsored for six years.