Former New Zealand Rugby board chair, Dame Patsy Reddy. Photo: Andrew Cornaga / www.photosport.nz
Former New Zealand Rugby chair Dame Patsy Reddy is playing down the potential financial impact of INEOS pulling out of its sponsorship deal with NZR, saying she doesn't believe it will be a "major setback" for the governing body.
New Zealand Rugby first became aware of INEOS' intentions to pull out of their sponsorship agreement last year, she says.
NZR is suing the petrochemical company for allegedly ending their six year deal three years early.
Dame Patsy Reddy. Photo: Michael Bradley
NZR also claims INEOS failed to pay the first instalment of the 2025 sponsorship fee.
Dame Patsy told RNZ's Nine to Noon that New Zealand Rugby first heard of potential issues with INEOS' sponsorship in 2024.
"It was during the course of last year," Dame Patsy said.
"This has been a discussion for some time."
Dame Patsy believes NZR should pursue legal action against the company, chaired by British billionaire Sir Jim Ratcliffe.
"Ultimately NZR is quite entitled and should stand up for its legal rights."
The INEOS sponsorship was believed to be worth about $44 million and there are concerns the end of the deal could deliver a serious financial blow to New Zealand Rugby, which recorded a $9 million dollar loss last year.
However, Dame Patsy doesn't think it will have a significant impact.
"It is a big sponsor, but it won't cause particular problems. NZR's got a healthy balance sheet, and there are a lot of sponsors keen to support NZR, so I don't see this being a major setback," she said.
"It's definitely undesirable and NZR and probably all New Zealanders would like to see INEOS comply with its legal obligations and contractual responsibilities, but it's not fundamental."
INEOS has said it wanted to adjust the sponsorship deal, but NZR chose to pursue legal action instead.
New Zealand Rugby chief executive Mark Robinson and former chair Dame Patsy Reddy. Photo: PHOTOSPORT
Dame Patsy said New Zealand Rugby, led by chief executive Mark Robinson, have tried to make things work.
"There's no doubt NZR is always keen to engage with its sponsors and to assist them. It's really important that's a mutually respectful relationship and it always is with our sponsors. This one has broken down, but it wouldn't have broken down overnight."
The INEOS news comes at a time when NZR is also renegotiating broadcast rights and other significant income streams.
Sky is believed to be significantly cutting its offer.
Dame Patsy said the broadcast rights deals will be key for NZR and believes the governing body will be considering other alternatives to Sky.
"Broadcast is a very important contractual relationship for NZR as it is for all rugby unions. So, yes, it's very very important, and that is ongoing. And, I'm sure they're making positive progress.
"I'm sure they're looking at all options. You don't put all your eggs in one basket too soon."
Professional rugby faces financial challenges around the world and Dame Patsy said New Zealand Rugby is positioned as well as anyone.
"Finances are an issue for all sports and professional sports around the world. Other than in the US where we've seen the extraordinary growth in their NBA basketball and also we've just seen the NFL Super Bowl. It's extraordinary the size of that.
"Professional sports are challenging. World Rugby is no different and national rugby unions around the world, they've all got financial sustainability challenges. But in the context of those, NZR is well placed."
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