1 00:00:00,080 --> 00:00:03,920 Speaker 1: Indsed Rugby's launch legal action against its major sponsor INIOS, 2 00:00:03,960 --> 00:00:09,479 Speaker 1: for breaching its six year sponsorship contract. Indeed, Rugby says 3 00:00:09,480 --> 00:00:12,320 Speaker 1: Ineos failed to pay the first installment of this year's 4 00:00:12,360 --> 00:00:15,840 Speaker 1: fee and that this shows it's exiting its agreement three 5 00:00:15,960 --> 00:00:18,200 Speaker 1: years early. So it's not like it's been a cup, 6 00:00:18,239 --> 00:00:20,000 Speaker 1: you know. It's not like it's been five years and 7 00:00:20,040 --> 00:00:23,160 Speaker 1: they're getting out just before six The deal reportedly worth 8 00:00:23,239 --> 00:00:26,920 Speaker 1: eight million dollars a year. Insedre says its financial position 9 00:00:27,040 --> 00:00:30,200 Speaker 1: is strong. It started looking for a replacement sponsor for 10 00:00:30,320 --> 00:00:33,279 Speaker 1: me ended Rugby CEO David moffitters with me, good evening. 11 00:00:33,120 --> 00:00:35,840 Speaker 2: David, Okay, Ryan, how are you doing. 12 00:00:35,960 --> 00:00:39,080 Speaker 1: You're really good, thank you. Why are they pulling out 13 00:00:39,120 --> 00:00:39,360 Speaker 1: of this? 14 00:00:40,800 --> 00:00:43,240 Speaker 2: Well, I don't think anybody knows at the moment, and 15 00:00:44,200 --> 00:00:47,160 Speaker 2: if it ever gets to court, I'm sure we'll find 16 00:00:47,159 --> 00:00:52,600 Speaker 2: out the reasons behind it. It's it's a big step 17 00:00:52,680 --> 00:00:57,160 Speaker 2: to take for a sport to sue it's a major sponsor, 18 00:00:57,280 --> 00:00:59,840 Speaker 2: But on the face of it, I don't see where 19 00:01:00,120 --> 00:01:04,720 Speaker 2: they've had any other option to do that. If after 20 00:01:04,840 --> 00:01:08,240 Speaker 2: I believe eight months of discussions they haven't been able 21 00:01:08,400 --> 00:01:12,039 Speaker 2: to reach an agreement, that's so they said, in a 22 00:01:12,080 --> 00:01:14,080 Speaker 2: situation like this, the only people that are going to 23 00:01:14,080 --> 00:01:18,080 Speaker 2: win all lawyers, and you know they will be damaged 24 00:01:18,120 --> 00:01:23,600 Speaker 2: onto both brands. But hopefully the New Zealand Rugby have 25 00:01:23,680 --> 00:01:28,000 Speaker 2: got some really really strong legal advice which puts them 26 00:01:28,000 --> 00:01:33,440 Speaker 2: on strong grounds so that they're able to recover what 27 00:01:33,640 --> 00:01:34,360 Speaker 2: is rightfully there. 28 00:01:34,680 --> 00:01:36,640 Speaker 1: The other thing they need is a strong balance sheet 29 00:01:36,640 --> 00:01:37,639 Speaker 1: in the meantime, right. 30 00:01:39,200 --> 00:01:44,759 Speaker 2: Well, I think the inescapable fact is that that Anios 31 00:01:44,840 --> 00:01:49,600 Speaker 2: and the owner of Anios are reasonably wealthy and so 32 00:01:49,760 --> 00:01:55,160 Speaker 2: therefore they won't have taken this action lightly and they 33 00:01:55,160 --> 00:01:58,760 Speaker 2: will have looked at all of the options, including the 34 00:01:58,800 --> 00:02:05,440 Speaker 2: cost of legal fees. But all of these things get settled, 35 00:02:05,840 --> 00:02:07,800 Speaker 2: you know, on the steps of the courthouse, if you're 36 00:02:07,840 --> 00:02:11,600 Speaker 2: saying goes. And one would hope that this would be 37 00:02:11,840 --> 00:02:17,400 Speaker 2: the case because I think the New Zealand Rugby are 38 00:02:17,400 --> 00:02:20,600 Speaker 2: facing some financial headwinds. You know, we're not quite sure 39 00:02:20,639 --> 00:02:25,080 Speaker 2: what's going to happen with the new deal on with 40 00:02:25,200 --> 00:02:29,920 Speaker 2: Sky and also you know, losing a sponsorship like this, 41 00:02:30,040 --> 00:02:32,680 Speaker 2: but they should be able to replace it. 42 00:02:33,320 --> 00:02:36,000 Speaker 1: Well, they say that they're looking. How hard is that 43 00:02:36,040 --> 00:02:38,360 Speaker 1: to do, especially when it's you know, it's something that 44 00:02:38,440 --> 00:02:40,880 Speaker 1: has to be done in relatively short order. How hard 45 00:02:40,880 --> 00:02:43,040 Speaker 1: will it be for them to find a replacement sponsor 46 00:02:43,120 --> 00:02:47,040 Speaker 1: and to that level of money as well cash? 47 00:02:47,120 --> 00:02:49,040 Speaker 2: Yeah, I guess the first thing they've had to do 48 00:02:49,200 --> 00:02:52,880 Speaker 2: is to actually cancel the sponsorship for non performance, so 49 00:02:52,960 --> 00:02:55,760 Speaker 2: that gives them the right to negotiate with other parties. 50 00:02:56,880 --> 00:03:01,079 Speaker 2: That would be the thing. Other than that. You know, 51 00:03:01,120 --> 00:03:04,920 Speaker 2: if they have been negotiating to try and stave off this, 52 00:03:05,520 --> 00:03:12,720 Speaker 2: then something might be done. But you know, what I 53 00:03:12,880 --> 00:03:16,959 Speaker 2: believe is happening is that it's actually the New Zealand 54 00:03:17,080 --> 00:03:21,560 Speaker 2: corporate sponsorship are part of the business which is involving 55 00:03:21,680 --> 00:03:24,959 Speaker 2: silver Lake, which is actually going to be taking the 56 00:03:26,080 --> 00:03:29,560 Speaker 2: court action rather than New Zealand Rugby because as you know, 57 00:03:29,720 --> 00:03:33,960 Speaker 2: silver Lake, they've formed a separate organization and that organization 58 00:03:34,080 --> 00:03:38,360 Speaker 2: is responsible for getting new sponsorships and servicing those sponsorships. 59 00:03:39,040 --> 00:03:42,640 Speaker 2: So it'll be interesting to see what you know, I mean, 60 00:03:42,920 --> 00:03:45,840 Speaker 2: silver Lake said that they were going to get one 61 00:03:45,880 --> 00:03:48,640 Speaker 2: hundred million new fans and they were going to you know, 62 00:03:49,160 --> 00:03:53,080 Speaker 2: they were the best people placed to actually build the 63 00:03:53,240 --> 00:03:57,320 Speaker 2: sponsorships and retain them. So it'll be interesting to see 64 00:03:57,760 --> 00:03:59,960 Speaker 2: why they haven't been able to with all of the 65 00:04:00,600 --> 00:04:03,160 Speaker 2: supposed connections. Why they haven't been able to get this 66 00:04:03,280 --> 00:04:06,600 Speaker 2: resolved before it gets into the public domain. 67 00:04:07,040 --> 00:04:11,680 Speaker 1: Absolutely, it's a really good point, David One. I'm sure 68 00:04:11,680 --> 00:04:14,280 Speaker 1: that they're pondering right now. We really appreciate your time. 69 00:04:14,360 --> 00:04:17,839 Speaker 1: David Moffatt, former ends in Rugby CEO with us For 70 00:04:17,920 --> 00:04:21,559 Speaker 1: more from Hither Duplessy Allen Drive listen live to news talks. 71 00:04:21,560 --> 00:04:24,760 Speaker 1: It'd be from four pm weekdays, or follow the podcast 72 00:04:24,839 --> 00:04:25,800 Speaker 1: on iHeartRadio.