Bernard Laporte, the head of the French Rugby Federation, got a two-year suspended prison sentence and a 75,000 euro (NZ$123,000) fine after being found guilty in a trial over influence peddling and illegally acquiring assets.
In the same verdict, the Paris criminal court also handed top division club Montpellier's owner Mohed Altrad an 18 months suspended prison sentence.
Altrad - the founder of All Blacks sponsor Altrad - was also found guilty of active corruption, influence peddling, and misuse of corporate assets, L'Equipe newspaper reported.
This year, NZ Rugby signed a six-year deal with Altrad to the the main sponsor on the jersey of the All Blacks, Black Ferns and other national teams in a six-year deal worth over $120 million.
In light of Wednesday's verdicts, NZ Rugby said it would be meeting to discuss a further course of action with its stakeholders, suggesting the relationship could be in danger.
"We have been in discussions on the possibility of this outcome for some time," NZ Rugby said.
"With the verdict against Mr. Altrad personally now having been handed down, we will be reconvening with representatives from the company immediately – as well as with our key stakeholders."
Laporte was accused of undue influence in securing a role for his friend Altrad, whose construction company sponsors the France jersey. Both men denied any wrongdoing.
Laporte was found guilty of several offences including illegal taking of interest, influence peddling, corruption and embezzlement.
He will be banned from holding any position in rugby for two years.
World Rugby added in a statement that Laporte, who also holds the position of vice-chairman in the organization, will no longer perform his duties until further notice.
"World Rugby notes the decision by ... Laporte to self-suspend from all positions held within its governance structures with immediate effect following his conviction by the French court in relation to domestic matters, and pending his appeal," it said.
Next year's Rugby World Cup will be held in France from September 8 to October 29.
The verdict can still be appealed.
Reuters/Newshub.
