Ineos stopped making payments to New Zealand Rugby in order to "exit our six-year agreement" and the two parties have now reached a settlement over the £27m row
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Head of Sport for the INEOS group Sir Dave Brailsford looks on
Head of Sport for the INEOS group Sir Dave Brailsford with Manchester United CEO Omar Berrada
(Image: PA)
Sir Jim Ratcliffe's Ineos have officially ended its partnership with New Zealand Rugby after reaching a settlement over a £27million sponsorship deal that was due to run until 2027.
In February, New Zealand Rugby, which is responsible for the All Blacks and Black Ferns, took Ineos to court after the chemicals giant stopped making payments in an attempt to "exit our six-year agreement".
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As part of a broader cost-cutting strategy, Ineos had sought to renegotiate the terms of the deal. This strategy also involved ending a partnership with Tottenham Hotspur, announcing hundreds of redundancies at Manchester United, where Ineos is a co-owner, and withdrawing funding for Sir Ben Ainslie's America's Cup team.
In a joint statement, New Zealand Rugby and Ineos confirmed that a settlement had been reached, stating: "Whilst the details remain confidential, both organisations are satisfied with the outcome and acknowledge a desire to now move forward."
Although Ineos declined to comment on whether the relationship had ended, CityAm reports that it has ceased, and the company is no longer listed as a partner on New Zealand Rugby's website. The partnership with New Zealand Rugby was one of several sporting ventures undertaken by Ratcliffe as he sought to build a portfolio of teams.
Ineos continues to sponsor the Ineos Grenadiers road cycling team, holds a one-third stake in Mercedes F1, and owns stakes in football clubs Nice and Lausanne. In February, Ineos pointed to "the deindustrialisation of Europe" as the reason for stepping back from sponsorship commitments.
The company explained: "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."
They 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."
Ineos expressed disappointment with the response from New Zealand Rugby, stating: "Unfortunately, rather than working towards a managed solution, New Zealand Rugby have chosen to pursue legal action against their sponsor."
Despite the controversy, Ineos's logo has been visible on All Blacks training shirts, while French construction group Altrad continues as the team's main sponsor. Should the Ineos partnership end prematurely, Steve Martin of MSQ Sport + Entertainment warned City AM of significant repercussions for New Zealand Rugby: "They'd need to go to market while rugby is struggling."
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