In a statement to RNZ, NZ Rugby alleged the company owned by British billionaire Sir Jim Ratcliffe had ended its six-year sponsorship deal which began in 2022.
"New Zealand Rugby (NZR) is disappointed that INEOS has breached its sponsorship agreement. Most recently, it failed to pay the first instalment of the 2025 sponsorship fee, confirming its decision to exit our six-year agreement," the statement said.
"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.
"NZR is actively pursuing new commercial opportunities and global interest in the All Blacks and other Teams in Black remains high. We are committed to being world-class on and off the field and deliver unique value to sponsors through our iconic brands."
New Zealand Rugby announced the deal with petrochemical company INEOS in 2021. It was due to run for six years from 2022 to 2027.
The deal saw the All Blacks and Black Ferns join the INEOS stable which included the Mercedes-AMG Petronas F1 Team, the Grenadiers cycling team, Team UK sailing, and football clubs Nice and FC Lausanne-Sport.
The INEOS logo appeared on the back of the playing shorts and on the front of training jerseys of the the All Blacks, Black Ferns, All Blacks Sevens, Black Ferns Sevens, Māori All Blacks, All Blacks XV and All Blacks Under-20.
At the time NZR chief executive Mark Robinson said "to partner with INEOS and be part of such a unique and diverse global sports performance group is an exciting new venture".
Greenpeace criticised the deal urging NZR not to go ahead with it while a public letter by Kiwis in Climate labelled the deal "a backwards step for the All Blacks and New Zealand".
It was co-signed by a several notable New Zealanders, including former All Blacks Bob Burgess and Chris Laidlaw, Sir Bob Harvey, musician Neil Finn, Dame Anne Salmond, climate scientist Dave Frame, former Black Stick Emily Gaddum and Sophie Handford of Schools Strike 4 Climate.
Ratcliffe, one of the UK's richest figures, showed his ruthless side last month when he cut ties with decorated skipper Sir Ben Ainslie from his British America's Cup sailing syndicate.
