America’s Cup: New Zealand Rugby sues Ineos over sponsorship fee
New Zealand Rugby (NZR) has launched legal action against Ineos, the multinational chemicals company owned by British billionaire Sir Jim Ratcliffe, over an alleged breach of their six-year sponsorship agreement.
The deal, signed in 2021 and set to run from 2022 to 2027, was worth approximately NZ$48 million (£22m). NZR claims that Ineos has failed to pay the first instalment of the 2025 sponsorship fee, effectively exiting the agreement three years early.
The legal dispute comes amid broader restructuring efforts within Ineos’ sports investments, most notably the recent end of its partnership with Sir Ben Ainslie’s America’s Cup team. The company announced its split with Ainslie and his Athena Racing team in January 2025, raising questions about its future involvement in the prestigious sailing competition.
Ainslie’s team reacted by stating they were “astounded” by Ineos’ decision and warned that the split “raises significant legal and practical obstacles for them that will play out in the coming days and weeks.”
Sir Ben Ainslie speaking at the opening media conference for the Louis Vuitton Cup in Barcelona, August 2024. Image courtesy of Ivo Rovira/America’s Cup.
NZR’s sponsorship agreement with Ineos covered the All Blacks, Black Ferns, New Zealand Māori team, and the national sevens teams. Ineos branding appeared on the teams’ playing and training kits. NZR has stated that it will now remove Ineos logos from all team uniforms ahead of upcoming international matches.
NZR’s chief communications officer, Paul Stevens, told the Daily Telegraph: “New Zealand Rugby is disappointed that Ineos has breached its sponsorship agreement. Most recently, it failed to pay the first instalment of the 2025 sponsorship fee, 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.”
Sir Jim Ratcliffe shakes Peter Burling’s hand after the Louis Vuitton 37th America’s Cup in Barcelona. Photo courtesy of Ricardo Pinto/America’s Cup.
In response, Ineos issued a statement defending its position, attributing its decision to the economic downturn in Europe. The statement read: “Ineos has gratefully valued our sponsorship of New Zealand Rugby, having contributed over US$30m 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. Unfortunately, rather than working towards a managed solution, New Zealand Rugby have chosen to pursue legal action against their sponsor.”
Ineos’ sports website has removed references to its sponsorship of New Zealand Rugby, and its website page dedicated to the partnership now displays an error message. However, the company’s continued commitment to its America’s Cup challenge remains visible, despite the departure of Ainslie and his team.
NZR, meanwhile, has stated that it is actively seeking new commercial partners and remains confident in the marketability of the All Blacks brand. “NZR is actively pursuing new commercial opportunities and global interest in the All Blacks and other Teams in Black remains high,” the governing body said in a media statement issued to numerous media outlets. “We are committed to being world-class on and off the field and delivering unique value to sponsors through our iconic brands.”
The dispute comes at a time of increased scrutiny on Ineos’ sports strategy, particularly following its investment in Manchester United. Ratcliffe, who initially purchased a 27.7 per cent stake in the club for £1.25bn, increased his stake in the English football giant to 28.94 per cent in December. Manchester United’s recent struggles in the Premier League, coupled with the Ineos Grenadiers cycling team’s leadership changes, have drawn further attention to the company’s sporting ventures.
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