Rally GB starts legal action on sponsor

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Rally GB starts legal action on sponsor

Postby CrazyChick » Sun 19 Apr, 2009 11:20 pm

By David Evans Friday, April 17th 2009

Rally Great Britain has begun legal proceedings against the Welsh Assembly Government (WAG) following the WAG's decision to terminate its sponsorship contract for the UK's round of the World Rally Championship.

The action from Rally GB's commercial arm - International Motor Sports Limited - had been expected after WAG pulled the plug on a £2m per season deal which was scheduled to run until the end of 2011. The loss of funding has raised question marks over this October's Cardiff-based event.

While nobody from IMS has commented on the decision to begin legal action against the Assembly, politicians in Wales have supported the decision.

Welsh Liberal Democrat Shadow Economy Minister Jenny Randerson said: "This is a huge blow for Cardiff, they were hoping to expand the role Cardiff had to play in the rally and now the whole future seems to be in doubt.

"If Wales Rally GB is right in its assertion that WAG has a legal contract until 2011, then it is truly astonishing that WAG has taken this sudden decision to cut funding without any discussion.

"If legal action is successful, then it will end up costing the taxpayer and the stretched public purse............

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