New Zealand Rugby (NZR) has launched legal action against former sponsor INEOS for alleged breach of contract, saying the global chemicals producer had walked away from a six-year deal three years early.
Governing body NZR and INEOS signed a sponsorship agreement in 2021 which was to run from 2022-27.
The deal included INEOS branding on the back of playing shorts and on the front of training jerseys for the three-times world champion All Blacks and other national men's and women's rugby teams.
NZR said INEOS had informed them at the end of January that they intended to exit the agreement effective from January 1.
"New Zealand Rugby is disappointed that INEOS has breached its sponsorship agreement," NZR said in a statement on Tuesday.
"Most recently, it failed to pay the first instalment of the 2025 sponsorship fee, confirming its decision to exit our six-year agreement.
"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, a British multinational conglomerate in London, was contacted for comment.
INEOS chairman Jim Ratcliffe owns a minority stake in Premier League soccer club Manchester United and owns British professional cycling team, Grenadiers.
INEOS also backed Britain's America's Cup bid last year but announced in January it had split with skipper Ben Ainslie's crew which lost 7-2 to New Zealand in the final series.