Sir Jim Ratcliffe's company Ineos have reportedly come to a settlement with Tottenham Hotspur, after the latter filed a legal challenge against the company
Sir Jim Ratcliffe's firm, Ineos, has reportedly agreed to cough up over £11million to swiftly settle a lawsuit with Tottenham Hotspur. The company, owned by the Manchester United co-owner, was accused of breaching a five-year minimum contract worth £17.5m that allowed Tottenham to promote the firm's Grenadier as the club's "official 4X4 vehicle partner."
The deal was thought to have been inked in 2022, but Ineos had been partnered with Spurs since they were dubbed the club's "official hand-sanitiser supplier" during the Covid-19 outbreak. Tottenham called time on their deal with Ratcliffe's company in March and initiated legal proceedings three months later.
They claim an annual instalment exceeding £5m was not paid on December 1, having already allegedly missed an inflation-related payment of around £500,000.
According to the Telegraph, the total sum paid to Spurs remains under wraps, but a source close to the matter suggested the agreed amount was about half what the north Londoners were seeking. Furthermore Spurs were after nearly £5.3m in damages when the deal was terminated with more than two years left on the clock. Shortly thereafter, Ineos hit back by counter-suing Spurs for over £1m.
They pointed the finger at the north Londoners for engaging in sponsorship talks with Audi, which were tied to Harry Kane's potential transfer to Bayern Munich. Ineos stated: "On or around 3 August 2023 (i.e. early in contract year two), Todd Kline of the club indicated to Ashley Reed of Ineos that the club had been in discussions with the German car manufacturer Audi AG in connection with rights which were the same as, or substantially similar to, the rights granted to Ineos under the agreement and/or the club had been negotiating with Audi in respect of rights which were exclusive to Ineos under clause 4 of the agreement.
"According to Mr Kline, the discussions and/or negotiations related to a proposed transfer of the club's player Harry Kane to the German club FC Bayern Munich."
Ineos' defence also claimed the commercial partnership had "not materialised" before stating "this sequence of events ultimately resulted in the parties agreeing that Ineos could terminate the agreement with effect from the end of year three of the contract term”
They firmly stated: "In the circumstances, it is the club which owes Ineos more than £1m for failing to provide any rights to Ineos in the final part of year three."
Spurs acknowledged holding commercial discussions with Audi, but rejected suggestions these talks gave Ineos the right to terminate their agreement, given that Tottenham never finalised a deal with the German car manufacturer. Tottenham maintain the arrangement with Ineos "involved annual payments starting at £2.125m in year one and increasing to £4.6m in year five, all plus VAT and index-linked to the rate of inflation" and that they would be pursuing interest "further or other relief as the court thinks fit".
At the time, an Ineos spokesperson said: "Ineos Automotive was a partner of Tottenham Hotspur from 2022, expanding on a partnership agreement that Ineos Group had in place with the club since 2020. We had a contractual right to terminate our partnership contract and in December 2024 exercised that right."
Ineos have severed links with numerous major sports teams they had been backing. They have already ended partnerships with Ben Ainslie's sailing squad and the New Zealand All Blacks rugby union side.
In February, the Telegraph also reported the latter were launching legal action, claiming their agreement, which was expected to run until 2027, was terminated prematurely, despite a contract being in place.
Ineos have argued they have been compelled into cost-cutting due to "extreme" green carbon taxes in Europe. Ratcliffe has pointed the finger at escalating energy prices and taxes as the reasoning behind the firm's decision to shut down their synthetic ethanol plant in Grangemouth, Scotland. This move resulted in the loss of 80 direct roles and an additional 500 indirect jobs.