Sir Jim Ratcliffe’s Ineos has blamed the “deindustrialisation of Europe” after the Manchester United co-owner was sued by New Zealand Rugby over its latest cost-cutting measure.
New Zealand Rugby (NZR) went public with the dispute on Monday, claiming that Ineos had breached its sponsorship agreement by failing to pay an instalment of the £27m, six-year deal.
Ratcliffe has countered that Ineos tried to renegotiate with NZR after the chemical industry was hit by rising energy costs and taxes, and that talks would continue.
“Ineos has greatly valued our sponsorship of New Zealand Rugby, having contributed over $30m to the teams in recent years,” the company said.
“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.
“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.”
It is the latest twist in a turbulent period for Ratcliffe’s sporting empire, which also includes the Ineos Grenadiers cycling team and a stake in Mercedes F1.
He has been criticised by Manchester United fans after slashing more than 200 jobs and hiking ticket prices, while he is embroiled in a bitter row with Sir Ben Ainslie after pulling funding for his America’s Cup sailing team.
Ineos signed an agreement worth $4.5m (£3.6m) a year with New Zealand Rugby in 2021 but NZR alleges that it has not received its first instalment for 2025.
“New Zealand Rugby is disappointed that Ineos has breached its sponsorship agreement,” it said.
“Most recently, it failed to pay the first instalment of the 2025 sponsorship, 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.”