Elliott Smith: Newstalk ZB Rugby Journalist on the clash between NZ Rugby and INEOS

One of New Zealand Rugby's major sponsors has found itself offside with the national body. 

NZR has confirmed they're launching legal action against petrochemical company INEOS for breaching a deal worth $8 million a year. 

The petrochemical company hasn't paid its first 2025 instalment to have its logo on various All Blacks attire, making NZR believe they have exited their arrangement early. 

INEOS claims they tried to negotiate a solution before the legal action came. 

Newstalk ZB Rugby Journalist Elliott Smith told Francesca Rudkin that the company is blaming the decision on a commercial downturn in Europe. 

He says they’re looking for a way to save costs, and that between their new America’s Cup team and recent acquisition of Manchester United, it’s likely they felt the NZR contract would be easiest to ditch. 

LISTEN ABOVE 

See omnystudio.com/listener for privacy information.

Episode Transcript

Speaker 1 (00:00):
Now New Zealand Rugby has entered a legal battle with
its major sponsor Anios. They say Anios have failed to
make the first sponsorship payment of twenty twenty five and
they're trying to exit their six year contract three years early.
ZBI rugby commentator Elliott Smith is with me now, Good
morning Elliott.

Speaker 2 (00:16):
Good morning Francesca.

Speaker 1 (00:18):
So as the spot on the front of the AB
shirt no longer has coveted as it once was.

Speaker 2 (00:23):
Well, I think there's certainly elements of that in terms
of just being a tough time for marketing in sports
and getting value out of that dollar, but also in
the OUs their commercial revenue has been eaten up in
Europe and they are looking for a way to save cost.
Have now got to try and find a New America's
Cup team that they're going to try and fund. They've

(00:43):
got the Manchester United now as well, and the squeeze
has really come on at Sports the sports portfolio to
try and save some money. So I think they've gone Actually,
in New Zealand, we could probably flick that off and
save a bit of money there eight to ten million
New Zealand dollars a year. We can get rid of
that New Zealand Rugby said no, you've got a commercial
contract with us, and that's where the stalemate meets at

(01:05):
the moment.

Speaker 1 (01:06):
So that eight million, that was eight million per year,
not in the not for the total of the six.

Speaker 2 (01:11):
Years, not for the total of six years. So someone
in the facility of eight to ten million dollars a
year that New Zealand Rugby had agreed with Anios yere
that's substantial.

Speaker 1 (01:20):
Is this really a case though, of them not us?
I mean, have the All Blacks has New Zealand Rugby
I should say, looked after this partnership well enough.

Speaker 2 (01:29):
Well, look, having been around a lot of All Blacks events,
you see the Innios branding on the All Blacks clothing,
you see it a lot of sidelines of games, the
Anios logo. The year I've been at training runs around
the world, including London where a lot of the Inios
companies are based, and you've seen a lot of Ineos

(01:51):
representatives on the touch line there and been welcomed in there.
So in terms of trying to get that commercial dollar
and showing the opportun unities there and leveraging that, I
think New Zealand Rugby's done plenty to open the door
and the OS would say they could have always done more.
But seeing a statement from any OS overnight, they're very
much blaming a commercial downturn in Europe and petrochemical companies

(02:17):
feeling the squeeze in Europe for the decision not to
go not to pay this payment that they were owed
to New Zealand Rugby. They said that to New Zealand
Rugby to try and hammer out an agreement. Didn't come
to that from New Zealand Rugby. New Zealand Rugby weren't
interested so very much on a commercial side, it says
in the OS are blaming the fact they don't have
the money at the moment to try and meet those

(02:37):
payment that they agreed to with New Zealand Rugby.

Speaker 1 (02:40):
How long could it take to secure a new sponsorship contract.

Speaker 2 (02:44):
Well, these things are in play for nearly two years,
is my understanding. When they go out to tender, the
negotiations are hammered out. Whether you're get in front of
the jersey a spot on the shorts, what kind of
financials are involved, what kind of commercial obligations to RUF
from New Zealand's side in terms of tickets to matches
or hospitality, player appearances, promotions, everything like that. It can

(03:09):
take close to two years. So if they're not getting
eight million dollars this year from in the OS, it's
hard to see them making up in the short term.
There aren't as we know, there's a big business turn
don't downturn around a lot of the globe. They're not
killing up to sponsor sports of any shape at the moment,
so it's going to take a lot for New Zealand
Rugby to try and replace this, especially at short notice.

(03:31):
In you remember as well, their agreement with Ford came
to an end the end of last year as well,
or earlier this year or at some point this year.
So there's a couple of financial holes and shortfalls that
New Zealand Rugby's got to meet at a time when
you know the pressure is going on the community game.
They're looking for new revenue streams. They've lost two that

(03:52):
they are expecting, certainly one that are expecting in their
bank accounts. You know, from January first.

Speaker 1 (03:57):
Elliott Smith, thank you so much for talking us through that.
For more from earlier edition with Ryan Bridge, listen live
to News Talks itt B from five a m.

Speaker 2 (04:05):
Weekdays, or follow the podcast on iHeartRadio,