What the WRC “deal of the century” means for Hyundai and M-Sport

While crews were rattling through the final two stages of Friday’s leg of Rally Finland, the news the World Rally Championship service park had been waiting for months had dropped. The FIA announced that French automotive company Cosmobilis and private credit investor Park Square Capital have officially acquired WRC Promoter GmbH to take over the commercial rights of the WRC and the European Rally Championship.

An undisclosed long-term deal, thought to be in the region of 25 years, has been described by FIA president Mohammed Ben Sulayem as the “deal of the century” for rallying, bringing with it “significant new investment into the sport, helping to strengthen and grow its world-class motor sport portfolio for years to come.”

It's fair to say that the WRC has been in a state of flux waiting for this announcement. The WRC's radical 2027 technical rules, which will span a 10-year period, have been known for many months. But decisions regarding sporting regulations, calendars, formats and the championship’s promotional direction have been held up through a long and protracted sale process of WRC Promoter GmbH which was first mooted in two years ago.

That stalemate created uncertainty regarding the direction of the WRC, which isn't conducive in providing confidence to existing and prospective manufacturers weighing up a decision to invest millions into rally programmes. As it stands Toyota is the only traditional automotive manufacturer to commit to developing a new car to the 2027 rules alongside tuner operations Project Rally One and RMC Motorsport. At the time of writing current Rally1 teams Hyundai and M-Sport Ford are yet to officially confirm their participation next year and beyond.

But now a crucial piece of the jigsaw has been placed it should provide clarity and information to manufacturers weighing up the prospect of committing to the WRC. The new commercial rights holder is expected to unveil its vision for the future at Rally Paraguay later this month, but has already outlined ambitious plans to take the WRC and ERC to the next level, putting fans at the heart of the sport and making rallying more exciting, accessible and engaging. The FIA has also confirmed it will invest with the establishment of a new FIA Growth Fund that will "support projects that drive the success and development of rallying worldwide”.

How has Hyundai reacted to the news?

Hyundai has been the most vocal regarding the lack of information that its board has regarding the future of the WRC as it continues to weigh up its involvement in rallying. The brand has ruled out developing a 2027 car for next year which means its only option will be to run its Rally2 car that will be eligible to compete against the new WRC27 cars.

Hyundai needs approval at board level to continue in the WRC

Photo by: McKlein Photography / LAT Images via Getty Images

This announcement from the FIA is seen as a step forward that will edge Hyundai closer to submitting a proposal to its board.

“I think for the championship it's a very important step. Hyundai has been involved in WRC since 2014, and looks forward to working with the new promoter to start to settle the other existing points that are out there to be clarified,” Hyundai’s sporting director Andrew Wheatley told Autosport. “From that we can have all the information on the table to be able to go forward and make a decision with some knowledge and some certainty behind it which is what's been very much appreciated. 

“I think that's the best way to describe it, it's one piece of the jigsaw. We need to just make sure we get the last bits together because we can't put forward a proposal until we know exactly what we're dealing with. It’s very important that the first piece is done because that puts everything else into a priority and opportunity. I imagine over the next few weeks, months there'll be some fairly intense discussions.”

"It would be easy to try and get it signed off as a passion project. But that's not what top-level motorsport is. It's got to have a return on investment" Rich Millener

Ford keeping a close eye on WRC future

Likewise, M-Sport Ford finds itself in a same boat to Hyundai, although the British squad does plan to develop a Rally2 update kit, which is a strongest indication yet that it will be at least present next year with its Ford Fiesta Rally2 car.

But M-Sport has desires to develop a WRC27 car if it can find a manufacturer partner, with Ford the obvious candidate given its long-time association with the blue oval brand. Autosport understands Ford sent two of its top-level management figures to last weekend’s Rally Finland to meet with stakeholders, including the WRC’s new commercial rights holder.  

The FIA’s announcement has been met positively at M-Sport with team principal Rich Millener admitting the investment can only improve the championship and raise its profile and that in turn will increase its return on investment for sponsors and manufacturers.   

Two Ford bosses met with WRC chiefs at Rally Finland

Photo by: M-Sport

“For it to be officially announced with clarity and a direction for the long term is really positive and very exciting news. It now gives a stable base for the championship to build on,” Millener said. “Two investors, which is always good as two sets of eyes are better than one. An equity firm will want to see growth, which is good. It puts pressure on the championship to grow. And I think coupled with the new rules, it gives us a really good opportunity.

“It's not going to happen overnight. I think that needs to be realistic. To purchase the rights to something shows that they believe in what they're getting. They wouldn't do it if they didn't. So they believe there's growth. They believe there's big growth and I would tend to agree. There is a massive opportunity.”

But in terms of trying to convince Ford to commit to the WRC, Millener believes all the information is now on the table for the brand and other manufacturers to now be in a position to make a decision. 

“I think one of the biggest stumbling blocks for progression with them [Ford] was the fact there was no news on a promoter,” Millener added. “They're definitely keeping an eye on what's happening in the championship. They've been keeping an eye for a long time on the technical regs, and obviously they're set.

“There's probably nothing else more we can do now. Everything's in place. Now it comes down to them, their strategy, their choices, what they see as the future and whether WRC fits for them. And if it doesn't, then it'll be a huge shame, but there is a solid base in place for us to look at other ways we can do it as well.

"It would be easy to try and get it signed off as a passion project. But that's not what top-level motorsport is. It's got to have a return on investment, and it was honestly quite difficult for people to prove that up until now. Whereas now we've got solid foundations right across the board, so it's in the best place it can be. I'm just very excited and genuinely happy that we've now got the next step and are ready to move on.”

WRC's new commercial rights holder sees ways to grow rallying's top tier

Photo by: M-Sport