February 14 – Manchester United co-owners Ineos have found themselves embroiled in a legal battle with New Zealand Rugby (NZR) after abruptly ending their sponsorship of the All Blacks, citing financial pressures stemming from Europe’s economic landscape.
The petrochemicals giant, led by Sir Jim Ratcliffe, claims that soaring energy costs and extreme carbon taxes have forced it to implement cost-cutting measures – including walking away from the six-year deal, reportedly worth £22 million. In a statement, Ineos framed the decision as part of a broader struggle, saying: “We are witnessing the deindustrialisation of Europe.”
NZR, however, has taken a hardline stance, accusing Ineos of reneging on a contractual obligation and seeking to exit the agreement three years early, with one eye on the company’s financial commitment to Manchester United. The governing body confirmed that legal proceedings had been launched and is now moving to remove Ineos branding from the All Blacks’ iconic jersey.
The dispute raises wider questions about Ineos’ commitment to its sporting ventures. Since acquiring a growing stake in Manchester United, now at 28.94%, Ratcliffe’s group has already implemented sweeping cost-cutting measures, including 250 redundancies. Last month, Ineos also severed ties with Ben Ainslie’s America’s Cup sailing team, hinting at a narrowing of its once-expansive sports portfolio.
While Ineos insists it tried to negotiate a revised deal, NZR has made it clear that they see no room for compromise. “We have been left with no option but to launch legal proceedings to protect our commercial position,” the governing body stated.
If Ineos is unwilling to honour long-term agreements in rugby, concerns may grow over its financial strategy at Manchester United – particularly as the club navigates its own challenges of squad rebuilding, financial fair play and a desire for a new or revamped stadium.
“Ineos has greatly valued our sponsorship of New Zealand Rugby, having contributed over $30million to the teams in recent years,” the company’s statement, released on Tuesday opened.
“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.
“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.”
Already growing unpopular in the stands at Old Trafford, due to ticket price hikes and ill-educated transfer spending thus far, Ineos’ aggressive expansion into sport may now be facing its first serious financial reckoning.
Contact the writer of this story, Harry Ewing, at moc.l1741579721labto1741579721ofdlr1741579721owedi1741579721sni@g1741579721niwe.1741579721yrrah1741579721