Update from the CEO – Rally Sweden, where we stand and the road ahead

And there is an important difference between Sweden and many of our international counterparts.

In many countries, hosting a World Championship event is regarded as an investment in the country or region. National governments, regional authorities, tourism organisations and other public bodies may provide a significant share of the funding. In some cases, public funding is absolutely essential for the event to take place at all.

In Sweden, Rally Sweden receives no equivalent national government funding for the event.

Instead, one of Sweden’s largest annually recurring international sporting events has to be financed through a combination of commercial revenues, ticket sales, support from the host city and motorsport’s own resources.

That is an important part of the context when discussing Rally Sweden’s financial situation.

Rally Sweden is not just four days of competition in February. It is an international World Championship event that has to be planned, secured and financed throughout the year, while at the same time generating international exposure, tourism and economic impact for both the Umeå region and Sweden.

That is the perspective I bring home with me from the 2026 WRC season.

At the same time, I return home to a very different discussion here in Sweden.

In recent days, Rally Sweden has received considerable media attention. Reports have been published concerning the company’s finances, board, funding and future – including claims that Rally Sweden is facing bankruptcy.

I have great respect for the media’s role in scrutinising us. Rally Sweden is one of Sweden’s largest international sporting events, the company is owned by the Swedish Automobile Sports Federation, and our activities affect a great many people. That means we must be prepared to answer questions, accept scrutiny and be transparent about the challenges we face.

But transparency must also mean distinguishing facts from speculation.

When anonymous claims, assumptions and established facts are mixed together, the resulting picture risks becoming both misleading and directly harmful. I therefore want to provide a comprehensive picture of where Rally Sweden actually stands.

The finances – we have challenges

Rally Sweden AB faces financial challenges. We have never tried to hide that.

Moving one of Sweden’s largest international sporting events from Värmland to Umeå has, during the first few years, involved significant establishment costs, investments and unforeseen expenses.

Moving a World Championship rally is not simply a matter of relocating a competition from one place to another. In practice, we have built a new international event from the ground up – while at the same time delivering a round of the World Rally Championship every year.

At the same time, a change in the accounting assessment has had a significant impact on the company’s reported results and capital requirements.

This is the background to the decision by our owner, the Swedish Automobile Sports Federation, to provide a conditional shareholder contribution of up to SEK 14.5 million, while also requiring a long-term action plan for the company’s finances.

It is also important to clarify that the SEK 3.5 million paid by the Swedish Automobile Sports Federation to Rally Sweden AB is not an additional shareholder contribution. It is a partial repayment of an existing debt owed by the Federation to the company.

It is also important to explain that, together with the Federation, we have explored various options to find a solution to the situation.

One of the options considered was for the Swedish Automobile Sports Federation to finance the repayment of its debt to Rally Sweden AB through borrowing. The matter was also raised internationally with the FIA to explore whether financing or a loan could potentially be available through that route.

The FIA has made it clear that this type of financing is not something it provides, and it is therefore not a viable way forward. This should in no way be interpreted as a position on Rally Sweden – it is simply a matter of how the FIA, its financing and its remit are structured.

Together with our owner, we are therefore continuing to explore other financing options.

I believe this is important to explain, because it also demonstrates that our work is not about waiting for someone else to solve the situation. We are actively pursuing several different avenues – financing, costs, increased commercial revenues and long-term agreements.

The objective remains the same: to create a stable financial foundation for Rally Sweden while finding a sustainable solution to the financial commitments that already exist.

These are important distinctions when describing the company’s financial situation.

The claims about funding for 2027

One claim that has received widespread attention is that money intended for Rally Sweden 2027 has already “run out” or been used to cover old debts.

In my view, that description does not accurately reflect how an international event of this scale is financed and produced.

Rally Sweden does not begin in February when the first car leaves the start line.

Work on the following year’s event takes place throughout much of the preceding year. Staffing, planning, permits, safety, route preparation, commercial activities, suppliers and international coordination all generate costs long before rally week.

At the same time, there is a historical financial deficit that must be addressed. That is precisely why we are working on a new long-term financing model together with our owner, host city, commercial partners and other stakeholders.

Describing this simply as “the money for 2027 is gone” is therefore far too simplistic.

The claims of bankruptcy

Reports based on anonymous sources have also claimed that Rally Sweden is heading for bankruptcy.

I do not recognise that picture, and I want to be clear that no such process is underway on the part of the company.

That does not mean our finances are without challenges. On the contrary, we are working intensively on liquidity, cost levels and long-term financing.

But there is a significant difference between a company facing financial challenges that need to be addressed and stating that the company is facing bankruptcy.

That distinction matters.

Rally Sweden 2027

Our focus is on delivering Rally Sweden 2027 in Umeå.

Work on next year’s event is underway, and our dialogue with Umeå Municipality remains extremely important.

In parallel, we have had very positive discussions with WRC Promoter. Our latest meetings have been constructive, and the promoter has been clear about its ambition to continue working with Rally Sweden and to pursue a long-term agreement.

Having met people from the WRC, FIA, teams, organisers and other international stakeholders throughout the year, I feel even more convinced of Rally Sweden’s international significance.

Rally Sweden is not simply a Swedish event.

It is an established part of the FIA World Rally Championship, Sweden’s largest annually recurring international motorsport event and one of the most unique rallies in the championship.

We should therefore be careful not to talk down the value of what we have built.

But the model must change

At the same time, I want to be completely open: we cannot continue to operate Rally Sweden in exactly the same way as before.

When I look at how comparable events are financed internationally, it is also clear that Sweden needs to have a discussion about how we value and fund international championship events.

If Sweden wants to compete for World Championship events, the conditions must also be competitive.

We need a financial model in which revenues and costs are balanced over the long term. We need to strengthen our commercial revenues, review our cost structure and establish long-term agreements with our most important partners.

And we need effective corporate governance.

Today, I am both CEO and a member of the Board of Directors of Rally Sweden AB. That is not a reasonable arrangement in the long term.

The road ahead

My work right now therefore involves two parallel tasks.

The first is to work together with the organisation to ensure a strong Rally Sweden 2027.

The second is to work with our owner, Umeå Municipality, WRC Promoter, our partners and the organisation to create the conditions for Rally Sweden beyond 2027.

That work includes long-term agreements, a sustainable financing model, cost adjustments, increased commercial revenues and clearer corporate governance.

It will require change.

But there is also a great deal working in Rally Sweden’s favour.

We have a strong international brand. We have thousands of officials and volunteers who do a fantastic job year after year. We have partners who believe in the event, a host city that has worked with us to build a World Championship rally in an entirely new region, and an international promoter that wants to discuss a long-term future together.

Those are the foundations we must now build upon.

We need to work together

Rally Sweden is bigger than one company and bigger than the people who happen to be working on the event at any given time.

It is the result of an enormous collective effort by clubs, officials, volunteers, partners, businesses, the municipality, the region and Swedish motorsport.

If Rally Sweden is to continue developing and remain in Sweden, we therefore need to work together.

Criticism must, of course, be allowed. We should be scrutinised, and when we make mistakes, we must be prepared to take responsibility for them. But there is a difference between constructive criticism and actively spreading speculation, unconfirmed information or a picture of the company and the event that does not reflect reality.

The latter has consequences.

It affects confidence among partners, suppliers, public bodies and others on whom we depend in order to deliver a World Championship event in Sweden. Ultimately, it therefore risks damaging the very event that so many people say they want to protect.

We are at a point where Rally Sweden needs people who want to be part of the solution.

Our owner, Board, organisation, Swedish motorsport, Umeå, partners and other stakeholders need to pull in the same direction.

That does not mean we have to agree on everything. It means we must be able to distinguish between legitimate criticism and actions that genuinely harm the event.

I will continue to be open about the problems we face and the work required to solve them. But I also hope that everyone who cares about Rally Sweden’s future will consider the responsibility each of us has to contribute to it.

Finally

I understand that the headlines of recent days have caused concern among our employees, officials, partners, suppliers, clubs and everyone else who cares about Rally Sweden.

That is why I also believe it is important to say this:

We must not downplay our financial challenges. We must solve them.

We must not hide from difficult questions. We must answer them.

We must be self-critical when necessary and change what needs to be changed.

But neither should we allow speculation to become accepted as fact simply because it is repeated often enough.

Rally Sweden has undergone an enormous transformation since the move to Umeå. In just a few years, together we have built a new World Championship rally in northern Sweden.

Now we need to take the next step – from establishment to a financially and organisationally sustainable long-term model.

After a full WRC season travelling around the world, I also return home with a strong conviction:

Sweden has something that many other countries would go to great lengths to have – its own round of an FIA World Championship.

We should be proud of that, but we must also be prepared to work together to create the conditions needed to keep it.

That is the work I am focused on.

My mission is clear: to do everything I can to ensure that Sweden continues to have one of the world’s leading rallies and a natural place in the FIA World Rally Championship.

But no one can accomplish that mission alone.

We build Rally Sweden together – and its future is a shared responsibility.

Anna Nordkvist
CEO, Rally Sweden AB