INEOS have explained that ‘cost-saving measures’ has led to their bitter legal battle with the New Zealand Rugby team. The All Blacks announced on Tuesday that they were suing the chemical giants for their apparent attempts to end a lucrative sponsorship deal early. Ineos became the team’s official partner in 2021 on a six-year deal. But it has been suggested that Sir Jim Ratcliffe’s company have attempted to back out of the agreement early. A statement from the All Blacks read: "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.". And Ineos have hit back with an attempt to explain the circumstances that has led to the bitter fallout. A statement read: “Ineos has greatly valued our sponsorship of New Zealand Rugby, having contributed over USD $30million to the teams in recent years.
“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.
Have INEOS been a success with Man United fo far? Share your thoughts in the comments below. “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.”. The partnership between Ineos and the All Blacks was understood to be worth around £3.65million per year. As part of that agreement, Ineos’ name featured across the team’s training gear and on warm-up kits during the recent Autumn internationals. Branding also featured across the back of player’s shorts.
INEOS’ decision to back out of their agreement is not the first bit of cost-cutting executed by Ratcliffe recently. He has also attempted to slash costs with Manchester United, a move that has included axing legendary boss Sir Alex Ferguson’s ambassadorial role. Join our new WhatsApp community and receive your daily dose of Mirror Football content. We also treat our community members to special offers, promotions, and adverts from us and our partners. If you don't like our community, you can check out any time you like. If you're curious, you can read our Privacy Notice.
