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ACP wants Rally of Portugal to be funded by the central State again

"This is a test that has very high costs", defended João Mendes Dias, ACP operations director.

ACP wants Rally of Portugal to be funded by the central State again
Notícias ao Minuto

16:00 - 23/04/24 por Lusa

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The Automóvel Clube de Portugal (ACP) wants the State to once again finance the Rally of Portugal, which last happened in 2021, arguing that the event, which costs four million euros, is in deficit.

Speaking today during the presentation session of the ceremonial start of this year's Rally of Portugal, scheduled for Coimbra on 9 May, the ACP's operations director, João Mendes Dias, praised the support of the municipalities for the Portuguese round of the World Rally Championship (WRC), revealing that the competition is in financial deficit.

"An event of this size, with this level of security, with this level of demand in terms of mobilisation of resources and logistics, is an event that has very high costs, and which are not compatible with purely corporate financing, and must rely on public support", João Mendes Dias told the Lusa news agency, speaking on the sidelines of the session.

The ACP director clarified the financial support provided by the Portuguese State to the Rally of Portugal over the years, arguing that this "has had several moments", having been assumed, for a long period, by Turismo de Portugal and, more recently, until 2021, financed by the Regional Coordination and Development Commission.

"In 2021, after the end of the validity period of the most recent model, it was not possible to resume the previous period in which support came via Turismo de Portugal", he added.

Currently, the ACP is in talks with both entities to "see what model it may be possible to adopt again, to resume what has always been the practice of supporting the rally and which, basically, is what happens practically everywhere", observed João Mendes Dias.

In costs of services provided by State entities or other related entities alone -- such as the GNR, PSP, Civil Protection and firefighters -- the Rally of Portugal costs approximately one million euros, or "a very significant portion of an overall cost of around four million euros".

The Automóvel Clube de Portugal official noted that "the accounts and balances are very delicate", arguing that the sources of revenue are the support of the municipalities (15 of which are hosting the rally this year, six in the Centro region and nine in the Norte region of the country), in addition to sponsors and team registrations.

"Which is short for the level of investment in question and to ensure that we hold the event with the quality that we do. This central support is very necessary to make the balance of these accounts viable", João Mendes Dias reaffirmed.

As the ACP is a non-profit public interest entity, the Rally of Portugal does not make a profit: "On the contrary, in recent years, it has borne a gap that we want to believe is temporary. It makes a loss for the ACP and this loss is a significant part of the four million euros that the event costs".

João Mendes Dias also recalled that there are several organisations in various countries wanting to register their rally in the WRC, as it is "an important distinction and the level of demand for this to happen is very high".

"And, obviously, associated with this demand, come the costs necessary to support everything that this represents. Hence our clear opinion that this is an initiative that promotes the country, promotes Portugal not only as a sporting destination, but also as a tourist destination. Most of the people who take part in our events leave here dazzled by the country", he emphasised.

And, in addition to the direct impacts associated with the event (estimated by the ACP in 2023 at 165 million euros, in what João Mendes Dias today stated constitutes a return that the rally gives to the municipalities), the director also highlighted "all the benefits from the returns" of those who come back as tourists.

"This is also why, for us, it is unequivocal that the Rally of Portugal deserves and needs to once again have a component of central support", he concluded.

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