New Zealand Rugby and Ineos have reached a settlement agreement after the Sir Jim Ratcliffe-owned company unilaterally terminated their deal with the All Blacks
Ratcliffe pleaded poverty earlier this year when he cut ties with New Zealand Rugby by failing to make the first scheduled instalment in 2025.
In response, NZR launched legal action against Ineos over what it believed was a breach of the sponsorship agreement.
NZR and Ineos signed a six-year sponsorship deal in 2022, thought to be worth around NZ$21m a year, but Ineos reneged on that agreement.
Ratcliffe, who is also a part-owner in Premiership giants Manchester United, revealed in an interview with the Daily Telegraph that European economic headwinds forced Ineos to cut back on investing in sport.
“I’m afraid life’s tough in trading in Europe, whether we like it or not,” said Ratcliffe. “I know it’s easy to just carry on, but I’m afraid life’s tough in the outside world in trading.”
NZR faced the possibility of not only losing NZ$21m of income this year but potentially hefty legal fees as they sort some kind of compensation payment for the early termination. However, that has not proved to be the case with the governing body confirming that an agreement has been reached.
“New Zealand Rugby and INEOS can confirm that a settlement has been reached between the two parties,” a joint statement read.
“Whilst the details remain confidential, both organisations are satisfied with the outcome and acknowledge a desire to now move forward.”
Ineos has reportedly paid what it owed for 2025, and offered a small additional payment on top, which means NZR’s financial position has been greatly improved.
The report adds that NZR have positive leads to replace Ineos as the search continues for a new sponsor for the back of its shorts and training tops.
If true, NZR will be in a better financial position this year than they would have been had Ineos stayed on as a sponsor of the All Blacks.
Additionally, it is thought that the publicity of a court case would damage Ratcliffe’s reputation further as he bids to turn Manchester United’s fortunes around after purchasing nearly 30 per cent share of the club in the last 12 months.
