Manchester United co-owners Ineos have hit back in extraordinary fashion after it emerged they were being sued by the All Blacks.
Sir Jim Ratcliffe’s petrochemicals giant has issued an explosive statement which claims they have decided to end their sponsorship of New Zealand Rugby thanks, no less, to the ‘deindustrialisation of Europe’.
They say the move to withdraw as performance partner – which has triggered legal action – was down to ‘high energy costs’ and ‘extreme carbon taxes’ on their businesses.
As a result, they say they have had to make ‘cost-saving measures’ which include pulling the plug on the six-year deal worth around £22m. ‘We are witnessing the deindustrialisation of Europe,’ they added.
Across 125 blistering words, Ineos have also taken a swipe at the Antipodean institution, claiming that ‘rather than working towards a managed solution, New Zealand Rugby have chosen to pursue legal action against their sponsor’.
Late last night Telegraph Sport reported that the All Blacks had accused the group of reneging on the latest instalment of a deal which came into play in 2021.
Ineos have hit back at the New Zealand rugby team with an explosive statement on Tuesday
The All Blacks accused Ineos of refusing to pay an instalment on a six-year deal and trying to ‘walk away three years early’
New Zealand Rugby said they were left with no choice but to take legal action against Ineos
New Zealand Rugby confirmed it was pursuing a legal route and it also emerged they were seeking to remove Ineos branding immediately from their famous jerseys.
The withdrawal may have caused concerns among United fans. Ratcliffe and his group took over the operations at Old Trafford after taking a quarter share in January last year which they have since increased to 28.94 per cent.
Already, they have made around 250 redundancies and have carried out a series of cost-saving measures as they seek to balance the books and free up cash to spend on the first team.
Last month, Ineos announced a split with Olympic legend Ben Ainslie’s America’s Cup team, as their wider sporting portfolio appears to narrow.
New Zealand Rugby accused the industry giant of refusing to pay an instalment on a six-year deal and attempting to ‘walk away three years early’.
‘We have been left with no option but to launch legal proceedings to protect our commercial position,’ they added.
At the time, Ineos could not be reached for comment. However, on Tuesday they had their say.
‘Ineos has greatly valued our sponsorship of New Zealand Rugby, having contributed over USD $30million to the teams in recent years,’ the statement opens.
The petrochemical industry giants have sponsored the New Zealand rugby team since 2021
Ineos purchased a quarter stake in Manchester United, which has since risen to 28.94 per cent
‘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. We remain in ongoing discussion with New Zealand Rugby.’
New Zealand Rugby have been contacted for comment.
