Last week it was revealed that rugby giants New Zealand, including the famous All Blacks, were suing sponsors and Manchester United part-owners Ineos.
The chemicals firm, co-owned by British billionaire Sir Jim Ratcliffe, stands accused of breaching its sponsorship agreement by failing to pay an installment of a £27m, six-year deal, that was signed in 2021.
Ineos has blamed the “deindustrialisation of Europe” for the cost-cutting measure, which is in line with a number of controversial savings Ratcliffe has made at Manchester United.
They weren’t the front-of-shirt sponsor for New Zealand’s teams, including the All Blacks and Black Ferns, but they were significant. And need replacing.
Major All Blacks problem
“This is a major problem for the All Blacks and New Zealand Rugby,” Steve Martin of MSQ Sport + Entertainment tells City AM.
“They’d need to go to market while rugby is struggling. The All Blacks are a showcase brand and are arguably the only rugby brand to transcend the sport and penetrate other markets.”
Prism’s executive director, strategy, Ed Wooller, agrees on the challenges New Zealand faces in selling this sponsorship spot – which currently dons the kits in a minor way while dominating training apparel – but eyes the women’s team as a potential way in.
“With the Ineos deal reported at $8M NZD p.a. (c£3.6), the price point is competitive when compared to a sport like football,” adds Wooller. “It’s also important to note that NZR represents both the All Blacks and the Black Ferns.
“The upcoming 2025 Women’s Rugby World Cup, poised to be the largest yet, offers a particularly compelling entry point for a brand to move quickly and secure a deal.”
The All Blacks and the wider New Zealand Rugby family enjoys a major global sponsorship partnership with Altrad, a construction engineering company which owns French Top 14 club Montpellier.
Their iconic black jerseys are made by Adidas while Taisho Pharmaceutical Holdings, Tudor watches, Bupa and Air New Zealand all feature on their global partners roster. Ineos’ logo is nowhere to be found on New Zealand Rugby’s website.
The pull
“The pull and gravitas of the All Blacks as a sporting property, particularly in the big events, will always attract brands,” Nick Jackman, co-founder of creative and social media agency 50 Sport, says.
“To get a new partner quickly you’d hope there is a chance they can upweight some existing partner contracts to accommodate new rights that are now (presumably) available due to other deals ending. In doing this, the shortfall might be able to be cut quicker and if the current partners are happy, it’s often the best way.”
Jackman adds that high growth industries will be key to finding a partner to replace Ineos. He adds that New Zealand “offer strong credentials in many areas” and potential suitors must agree withh the All Blacks’ “strong brand synergies including mental health, high performance, culture, history, worldwide appeal and a solid brand consistency”.
“The best way to attract new brands to their proposition is to get creative with sponsorship rights,” he concludes. “Delving deep into shared objectives with the partner, utilising creative and technology (AI) to carve brand narratives and ensuring there are trackable and measurable ROI for the partners and brands involved.”
New Zealand have the added bonus of being in an Asian time zone, which they have capitalised upon by an increase in games against Japan, as well as penetrating the US market and being a form of legacy brand in the European sphere.
Wooller says that they’ll be targeting automotive manufacturers, professional services, IT and consulting companies, something Martin agrees on, adding that software and bluechips would be ideal.
Who should New Zealand target?
But the two disagree about how valuable the relatively small Kiwi market will be to who New Zealand target.
“Ideally the company would have both a New Zealand presence and a strong European footprint,” Wooller states. But Martin insists that “the All Blacks are the Real Madrid of rugby so they do not need a New Zealand market base. The desire will be global, whether that involves New Zealand or not”.
This is not a major problem for New Zealand on the face of it, it is not like they’ve lost their front-of-shirt sponsor.
But it is in fact a huge issue, with financial payments no longer coming in and the organisation forced to the courts to get what they say they’re owed.
Rugby is in a financially insecure place and every dollar, pound and euro matters, and New Zealand Rugby – led by the iconic All Blacks – will be keen to make up the hole they’ve been left with.
The irony, of course, is that most fans would rather see all sponsors stripped off the jersey with the All Blacks going all black again – without being tarnished by logos – but that’s not the world we live in anymore.
Marketing matters, brand association matters, and commercial viability overshadows all. Whoever the All Blacks partner with next, it will be fascinating to see on what terms the parties agree.