INEOS says in talks with New Zealand Rugby over sponsorship dispute

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)