Simon Poter: Halo Sport Managing Director on the settlement between Ineos and NZ Rugby

Petro-chemical conglomerate Ineos have dug deep into their pockets to resolve financial differences with New Zealand Rugby over kit sponsorship. 

A settlement has been reached after NZR lodged an injunction at the High Court in Wellington – the figure reportedly in excess of $21 million. 

Ineos get to terminate the deal after three years, and NZR can now attempt to secure a new sponsor. 

Halo Sport Managing Director Simon Porter told Mike Hosking NZR now has some prized assets to sell, and have some time to ensure they get a good deal. 

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Episode Transcript

Speaker 1 (00:00):
We've got a deal. The New Zealand Rugby Union and
the former sponsor in the OS have sorted this thing out.
It's confidential, but the word is the union got all
of the money for this year and a little bit
of extra go away money as well in THEOS off
the uniforms. A new a new deal needs to be done.
The managing director of Halo'sport, Simon Porter, is with us. Simon,
very good morning to you.

Speaker 2 (00:18):
You might just finished making my.

Speaker 1 (00:22):
Sandwiches. Do the government doesn't do it for you?

Speaker 2 (00:25):
No? I know. Actually to be fear, my wife made them,
but I put them in the school bags this morning,
so I think that counts no fair enough.

Speaker 1 (00:32):
It's a joint contribution there, you go, well done. So
if they got this year's money the union and they
got a little bit of go away money to keep
it out of court, is that a win for the union.

Speaker 2 (00:44):
Yeah? I think so absolutely. I think they've got you know,
some prized assets now to sell back on the shorts
in the training jersey. They've got, you know, a tour
of Africa next year. They've got the Nation's Cup starting,
they've got the World Cup shortly. They've got an opportunity
to go out to market now probably and not have

(01:06):
to you know, it's probably a bad term, but fire
sale to get it on to get something into the coffers.
They've actually got a good time now to make sure
they get a good deal and probably something that might
last a bit longer. Ah.

Speaker 1 (01:18):
Well, I was going to ask about is links the
issue when you go into what was a multi year deal?
Are you taking a bigger risk as opposed to one,
two or three year deals or not.

Speaker 2 (01:27):
Yeah, Well, last time they were in market for Front
of Jersey they ended up doing I think it was
about six year deals with Alchrader on the Front of
Jersey with Anios and then Taysher Pharmaceuticals which is the
liverpood and Hi Rugby Championship, and they were six years.
And I think they'd like to get through a Rugby
World capital tagged into Pinnacle events. But also the collective

(01:48):
agreements with the players are generally three years duration, so
I imagine there's also a little bit of thinking around
trying to do six years get yourself through two sort
of collective agreement cycles. So now we're previously they had
all those sort of assets, We're all going to come
off at one time. They've actually got an opportunity now
to sort of probably break that cycle and get a

(02:11):
longer term partner that might not be coming off at
the same time as el tread who's got the frontages right?

Speaker 1 (02:16):
Has the Aeneos deal in any way shape or formed
into the All Blacks image? In other words, to people
believe it was in Eos. They don't have any money,
that's their problem. It's nothing to do with the All
Blacks and their value.

Speaker 2 (02:29):
I think there's probably a tough one to read from
down here in New Zealand. I mean, the All Blacks
are very much pitched as a global brand, and I
think they are a global brand. And in THEOS, I
mean I like cuckling, I like yachting, so I knew
in EOS were before they signed on to the All Blacks.
But I don't think there's probably a huge understanding of
whom and EOS are down in New Zealand, So I

(02:51):
don't think. I think it's probably been a positive one.
You know, it's a big step taking legal action against
a company the size of Ineos, particularly you know, the
sponsorship deals, lots of them get broken and it's normally
done done behind closed doors and so to take that step,
and in some ways I have admiration from USIL on
Rugby for you know, for taking that step and actually

(03:12):
going no, we're going to show the courage of our convictions.
We're in the right and we are going to take
the legal step and go out there. And so I
think overseas has probably been viewed as a bit of
a curiosity. I don't think it would have entered the
brand at all. I do think it's probably a good
thing that it's been done by way of sentiment as
opposed to ever going to court. I don't think anyone
ever really wins apart from the lawyers when it goes

(03:33):
to court. So I think that, you know, it's a
net positive as far as I'm concerned.

Speaker 1 (03:38):
Great stuff, Simon, appreciate your expertise as always. Simon Porter,
who's the Halo Sport managing director.

Speaker 2 (03:42):
We like him. For more from the Mic Asking Breakfast,
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