Swedish WRC Rally Faces Deep Financial Crisis Threatening Future

16 Million Kronor Deficit Disclosed by Auditors

Auditors stepped in to halt a multi-year accounting practice where Rally Sweden AB used advance funds from the Umeå municipality to cover previous deficits, according to Värmlands Folkblad. The organization reported a deficit of 16 million Swedish kronor. Peggy Dicksdotter Hermansson and Janne Ried, who resigned from the Swedish Motorsport Federation (SBF) board, told the newspaper that the organization’s management lacked sufficient competence.

“It became clear that we weren’t very good at running businesses. We simply didn’t have enough competence,” Dicksdotter Hermansson told Värmlands Folkblad. She noted that the multi-million kronor deficit was entirely unacceptable and that rally losses had been subsidized by the federation for years.

Umeå Municipality Funding Diverted to Past Debts

The Umeå municipality supports the competition with approximately 14,5 million kronor annually, distributed in three advance installments. However, reporting from Värmlands Folkblad revealed that funds allocated for the 2027 rally were already spent paying off debts left over from the 2026 event. Dicksdotter Hermansson stated she discovered in May that the advance funding was exhausted, leaving outstanding liabilities still unpaid.

Ried confirmed that future financing had been redirected for years to cover past event costs. The board itself has experienced a wave of resignations, leaving Anna Nordkvista as the sole remaining board member.

WRC Calendar Inclusion Amid Ownership Search

Despite the financial turmoil, the WRC calendar recently confirmed that Rally Sweden will retain its traditional February slot as the second round of the upcoming season. Nordkvista stated in a press release that work on next year’s rally began immediately following the conclusion of the previous event.

Efforts to find a new owner for Rally Sweden hit a roadblock in September when negotiations with an investor group from Umeå collapsed. The potential buyer cited communication issues and newly uncovered financial information as reasons for walking away. Dicksdotter Hermansson maintains that the event can still turn a profit under new management, calling the rally a significant brand for Swedish motorsport, while Ried emphasized that 2027 will serve as a crucial test to eliminate non-value-adding costs.

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