Sir Jim Ratcliffe Faces Legal Action Over INEOS’ Cost-Cutting Controversy

INEOS Under Fire for Missed Payment to New Zealand Rugby

Sir Jim Ratcliffe and INEOS have found themselves in hot water after New Zealand Rugby (NZR) launched legal action over a missed sponsorship payment. INEOS, co-owners of Manchester United, had signed a six-year sponsorship deal with NZR but have allegedly failed to meet their first 2025 payment and are now attempting to pull out of the agreement early.

NZR released a firm statement regarding the legal proceedings:

“Having learned of INEOS’ decision to walk away three years early, we have moved to protect the interests of New Zealand Rugby and the wider game. We have been left with no option but to launch legal proceedings to protect our commercial position.”

INEOS Responds With Bold Statement

Initially silent on the matter, INEOS later issued an explosive statement, blaming their cost-cutting decision on Europe’s worsening economic climate.

“INEOS has greatly valued our sponsorship of New Zealand Rugby, having contributed over $30m to the teams in recent years,” the statement read. “However, trading conditions for our European businesses have been severely impacted by high energy costs and extreme carbon taxes. We are witnessing the deindustrialisation of Europe.”

INEOS claims it attempted to negotiate a “sensible agreement” with NZR to adjust the sponsorship terms in light of these financial pressures. However, they expressed disappointment that NZR opted for legal action instead.

INEOS Cost-Cutting Measures Extend to Manchester United

The INEOS financial squeeze has not only affected their rugby sponsorship but also Manchester United, where the company has been criticized for severe cost-cutting measures, including:

• 250 non-playing staff redundancies
• Reduction in payments to club ambassadors
• Less financial support for a charity supporting former players
• Ticket price increases

Furthermore, Manchester United recently admitted to a United supporters’ group that they are at risk of breaching the Premier League’s Profit & Sustainability Rules (PSR) if they fail to raise sufficient funds.

What’s Next for INEOS & Jim Ratcliffe?

With legal battles brewing and financial struggles becoming more apparent, can INEOS navigate these turbulent times without further reputational damage? And what does this mean for Manchester United’s long-term stability under Jim Ratcliffe’s leadership?

Share your thoughts below! 👇