WAG U-turn over Rally GB sponsorship in 2010

Welsh Assembly Government has done a U-turn over its withdrawal from supporting Rally GB.

Facing the prospect of losing a claim for breach of contract and paying millions in compensation, the WAG has agreed to resume its support for the event.

An out of court settlement has been reached between the WAG and International Motor Sports Limited which was confirmed yesterday.

The Welsh Assembly Government’s support for the event had been in doubt as a result of the decision of the FIA World Motor Sport Council to include the Rally of Great Britain on the World Rally Championship only every second year.

However, in June the FIA World Motor Sport Council confirmed Britain ’s round on the WRC calendar for 2010. IMS had always told the WAG it was confident of keeping Rally GB in the international calendar.

Deputy First Minister Ieuan Wyn Jones said, “When doubts emerged over the rally’s status in 2010, we moved to protect our contractual position and taxpayers’ money. Now that those doubts have been removed, we are delighted to continue to bring this event to Wales , with all of the benefits it has for the people and economy of Wales.”

Alan Gow, Chairman of IMS said, “I am pleased to confirm that we have now resumed our partnership with the Welsh Assembly Government to continue to host the event. I’m confident that we can build on the current success of the rally and produce a truly spectacular event for the people and businesses of Wales.”

After the WAG said earlier this summer that they would no longer support the event, IMS took legal advice while also beginning the hunt for an alternative location for 2010. It also confirmed it would pay for this year's Rally GB out of its own funds.

It is not clear from the statement if IMS also secured funding to pay for this year's event which finishes in Cardiff today or whether the new contract with WAG is for one more year or more.

Nevertheless, the bickering surrounding the event since the early summer is bound to leave a stain on the ability of Wales to host major events and question marks must still remain about the quality of advice Welsh ministers were given before they decided to pull out of the event they now have resumed supporting.

It would have also been unfortunate if a court hearing over the IMS claim for breach of contract by WAG had taken place about the same time as the Ryder Golf Cup tournament in Newport in 2010.