Sir Jim Ratcliffe’s INEOS release ‘cost-saving’ statement after Manchester United owners SUED over payment failure

Sir Jim Ratcliffe’s INEOS have released a statement in response to the news that New Zealand Rugby are suing them over a failed sponsorship payment.

New Zealand Rugby are preparing to take legal action against Manchester United co-owners INEOS over an alleged breach of contract.

In a statement released this week, New Zealand Rugby accused Sir Jim Ratcliffe’s company of failing to uphold their lucrative sponsorship agreement.

INEOS signed a six-year deal in 2021 to serve as an official performance partner of the All Blacks until 2027. According to MailSport, the partnership is valued at approximately £3.65 million per year.

However, New Zealand Rugby claims that the petrochemicals giant failed to make the first payment for the 2025 sponsorship term.

In response, the All Blacks are set to remove the INEOS logo from their jerseys immediately as they search for a new sponsor and will take legal action against Ratcliffe’s company.

A statement explained that New Zealand Rugby were “disappointed” with the situation and were “left with no option but to launch legal proceedings to protect our commercial position.”

INEOS release cost-saving statement in response to All Blacks

Since then, a statement from INEOS has been released by MailSport where they stunningly claim that the failed payment was due to the “deindustrialisation of Europe”.

As a result of “high energy costs” and “extreme carbon taxes”, Ratcliffe’s company have withdrawn as the performance partner of the All Blacks as a “cost-saving measure” for the business.

“INEOS has greatly valued our sponsorship of New Zealand Rugby, having contributed over USD $30million to the teams in recent years,’ the statement reads.

“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.”

Read More: “They don’t care…” Paul Scholes rips into INEOS’ Manchester United ownership in frank reply to Sir Jim Ratcliffe

Cost-saving measures are become what INEOS and Ratcliffe are known for after their work at Old Trafford so far.

United have seen ticket prices rise and staff members sacked since the British billionaire took charge of the club.

Ratcliffe’s share in the club recently increased to 28.94 per cent after he originally had taken a quarter share in January 2024.

Make sure to follow UtdDistrict on X, Instagram, Facebook, YouTube, and TikTok to never miss out on any of our Manchester United content. Our podcast, What the Devil?, is released every Wednesday at 6 pm (BST) on the United View YouTube channel.