David Moffett: former NZ Rugby chief executive on the organisation taking legal action against Ineos

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

In a recent statement, NZR has confirmed they're launching legal action against petrochemical company Ineos for breaching a deal worth around eight million dollars a year.

NZ Rugby views Ineos' non-payment of the first instalment of 2025 as confirmation they've exited the six-year agreement early - and have 'no option' but to begin proceedings.

Former CEO David Moffett says this is a big step for NZR, but they haven't been left with any other options.

"In a situation like this, the only people that are going to win are the lawyers. There will be damage done to both brands, but hopefully NZ Rugby have got some really strong legal advice."

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Episode Transcript

Speaker 1 (00:00):
Indsed Rugby's launch legal action against its major sponsor INIOS,
for breaching its six year sponsorship contract. Indeed, Rugby says
Ineos failed to pay the first installment of this year's
fee and that this shows it's exiting its agreement three
years early. So it's not like it's been a cup,
you know. It's not like it's been five years and
they're getting out just before six The deal reportedly worth

(00:23):
eight million dollars a year. Insedre says its financial position
is strong. It started looking for a replacement sponsor for
me ended Rugby CEO David moffitters with me, good evening.

Speaker 2 (00:33):
David, Okay, Ryan, how are you doing.

Speaker 1 (00:35):
You're really good, thank you. Why are they pulling out
of this?

Speaker 2 (00:40):
Well, I don't think anybody knows at the moment, and
if it ever gets to court, I'm sure we'll find
out the reasons behind it. It's it's a big step
to take for a sport to sue it's a major sponsor,
But on the face of it, I don't see where
they've had any other option to do that. If after

(01:04):
I believe eight months of discussions they haven't been able
to reach an agreement, that's so they said, in a
situation like this, the only people that are going to
win all lawyers, and you know they will be damaged
onto both brands. But hopefully the New Zealand Rugby have
got some really really strong legal advice which puts them

(01:28):
on strong grounds so that they're able to recover what
is rightfully there.

Speaker 1 (01:34):
The other thing they need is a strong balance sheet
in the meantime, right.

Speaker 2 (01:39):
Well, I think the inescapable fact is that that Anios
and the owner of Anios are reasonably wealthy and so
therefore they won't have taken this action lightly and they
will have looked at all of the options, including the
cost of legal fees. But all of these things get settled,

(02:05):
you know, on the steps of the courthouse, if you're
saying goes. And one would hope that this would be
the case because I think the New Zealand Rugby are
facing some financial headwinds. You know, we're not quite sure
what's going to happen with the new deal on with
Sky and also you know, losing a sponsorship like this,

(02:30):
but they should be able to replace it.

Speaker 1 (02:33):
Well, they say that they're looking. How hard is that
to do, especially when it's you know, it's something that
has to be done in relatively short order. How hard
will it be for them to find a replacement sponsor
and to that level of money as well cash?

Speaker 2 (02:47):
Yeah, I guess the first thing they've had to do
is to actually cancel the sponsorship for non performance, so
that gives them the right to negotiate with other parties.
That would be the thing. Other than that. You know,
if they have been negotiating to try and stave off this,
then something might be done. But you know, what I

(03:12):
believe is happening is that it's actually the New Zealand
corporate sponsorship are part of the business which is involving
silver Lake, which is actually going to be taking the
court action rather than New Zealand Rugby because as you know,
silver Lake, they've formed a separate organization and that organization

(03:34):
is responsible for getting new sponsorships and servicing those sponsorships.
So it'll be interesting to see what you know, I mean,
silver Lake said that they were going to get one
hundred million new fans and they were going to you know,
they were the best people placed to actually build the
sponsorships and retain them. So it'll be interesting to see

(03:57):
why they haven't been able to with all of the
supposed connections. Why they haven't been able to get this
resolved before it gets into the public domain.

Speaker 1 (04:07):
Absolutely, it's a really good point, David One. I'm sure
that they're pondering right now. We really appreciate your time.
David Moffatt, former ends in Rugby CEO with us For
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