Ineos were sued earlier this year for an alleged breach of their contract with NZR
They have reached a settlement agreement with NZR over their sponsorship deal
By SAM BROOKES
Published: 03:58 EDT, 1 April 2025 | Updated: 03:58 EDT, 1 April 2025
Manchester United's part-owners Ineos have reached a settlement agreement with New Zealand Rugby (NZR) over their sponsorship dispute.
The global chemical company, fronted by British billionaire Sir Jim Ratcliffe, signed a multi-million pound deal with NZR in 2021 that was due to run until 2027.
However, they informed NZR in January that they were planning to end their partnership almost three years early as part of the company's cost-cutting measures.
NZR reacted by taking legal action against Ineos, but the two parties announced on Monday that they have now settled their dispute.
Both organisations stated they are happy with the agreement, although details remain confidential.
The dispute had threatened to turn ugly, with NZR claiming back in February that they had 'no option' but to sue Ineos.
Sir Jim Ratcliffe's Ineos have reached a settlement agreement with New Zealand Rugby
Ineos were accused of breaching their sponsorship deal with NZR, but have now settled their dispute
In a bombshell statement, the All Blacks wrote: '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.'
But the matter has now been settled out-of-court.
Ineos' decision to cut ties with NZR came off the back of the company holding a review of their spending commitments amid United's difficult financial position.
Ratcliffe claimed last month that United were at risk of running out of money by the end of 2025 if they did not make significant changes, as he explained why the club made 250 staff redundant last year.
But the 72-year-old remains committed to bringing success to United after completing his partial takeover of the club last February.
Ratcliffe announced plans in March for a new £2bn super-stadium and regeneration of the south Manchester area, with United set to demolish Old Trafford in the coming years.
Manchester UnitedJim Ratcliffe