One of New Zealand Rugby's major sponsors has found itself offside with the national body. 

NZR has confirmed they're launching legal action against petrochemical company INEOS for breaching a deal worth $8 million a year. 

The petrochemical company hasn't paid its first 2025 instalment to have its logo on various All Blacks attire, making NZR believe they have exited their arrangement early. 

INEOS claims they tried to negotiate a solution before the legal action came. 

Newstalk ZB Rugby Journalist Elliott Smith told Francesca Rudkin that the company is blaming the decision on a commercial downturn in Europe. 

He says they’re looking for a way to save costs, and that between their new America’s Cup team and recent acquisition of Manchester United, it’s likely they felt the NZR contract would be easiest to ditch. 

LISTEN ABOVE