Rally Sweden AB is threatened with bankruptcy after years of deficits and municipal subsidies that are used to pay debts

The municipality of Umeå, where the competition is decided, has stepped in with multimillion-dollar grants in rounds to keep the competition alive. But according to Värmland's Folkblad, the municipal grants for next year's competitions have been used to pay off the previous year's debts for several years. After several years of negative results, the auditors have now stepped in and put an end to the scheme.

The company that runs the competition, Rally Sweden AB, made a deficit of around SEK 16 million. According to one of the newspaper's sources, it is only a matter of time before the long-standing competition, which is part of the World Rally Championship, goes bankrupt.

There are also reports of a crisis in the board where CEO Anna Nordkvist is the only member left after several defections.