(Reuters) – Chemical producer INEOS has said it is in discussions with New Zealand Rugby (NZR) following the sport federation’s decision to pursue legal action over a sponsorship dispute.
NZR said on Tuesday that INEOS had breached their contract and failed to pay a sponsorship fee, ending a six-year deal three years early.
INEOS said it had sought to adjust its sponsorship with NZR as part of cost-saving measures across its business, blaming the impact of high energy costs and “extreme” carbon taxes on trading conditions in Europe.
“Unfortunately, rather than working towards a managed solution, New Zealand Rugby have chosen to pursue legal action against their sponsor,” INEOS said in a statement.
“We remain in ongoing discussion with New Zealand Rugby.”
Governing body NZR and INEOS signed a sponsorship agreement in 2021 which was to run from 2022-27.
The deal included INEOS branding on the back of playing shorts and on the front of training jerseys for the three-times world champion All Blacks and other national men’s and women’s rugby teams.
INEOS, a British multinational conglomerate in London, said it had contributed over $30 million to New Zealand’s national teams in recent years.
INEOS also backed Britain’s America’s Cup bid to the tune of 100 million pounds ($124.42 million) but announced in January it had split with skipper Ben Ainslie’s crew which lost 7-2 to New Zealand in the final series of the sailing competition last year.
($1 = 0.8037 pounds)
(Reporting by Ian Ransom in Melbourne; Editing by Kim Coghill)
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