THE 2011 Rally Isle of Man event was cancelled in September after what organisers called a "desperately disappointing decision".
The board of directors of the event announced that the rally would not go ahead as planned between October 27 and October 29.
A statement released by the board said: "The rally, which is the Island's only event that is a round of an international motorsport championship, has suffered a series of major blows that have led to the decision.
"The organisers, Rally Isle of Man Limited, had moved to a mid-autumn date this year as part of the requirements of the Isle of Man Government which has historically been the primary event backer. The dates were the only ones agreeable to all the key stakeholders in the event allowing it any chance to run at all.
"In moving the rally was to have been a double-header finale to the UK's major title chases, the Dulux Trade British Rally Championship, Dunlop/Wonago MSA British Historic Rally Championship and the BRC Challenge.
"The board's worst fears, arising from the change, came to fruition last month when it was announced that the event would not be a round of the main British Championship or the BRC Challenge next year. 2012's event would have marked the 40th anniversary for the event as part of the UK's premier championship.
"Organisers have sadly received a further body blow this week with British Historic Championship officials advising that the event will not feature on their 2012 calendar either. This is the best supported of the major series in terms of competitor numbers and has contributed 40 or more entries each year over the last decade.
"Both sets of series promoters cite the change of dates as a key reason for the decision allied to the high cost of travel for competitors to the Island. Both also travel to the Ulster Rally in mid-August as a qualifying round, and will do so again next year, and state that the cost comparison offers little incentive to come to the Isle of Man.
"The move to October also means the event loses any direct ferry link with Ireland to coincide with the rally. Three of the top four starters in last year's international event, winner Keith Cronin, Alastair Fisher and Jonathan Greer, came from the Emerald Isle. Similarly the winner of the Historic Rally, Ryan Barrett, travelled from Omagh to tackle the Manx roads which are considered amongst the biggest challenge in the sport.
"In addition the fastcraft sailings to Liverpool have also ended for the season by the scheduled dates adding to transport difficulties and costs for crews, teams, officials and spectators alike.
"Organisers have also run into a further difficulty in recent days over the route with last minute objections throwing into doubt their ability to run the flagship Castletown spectator stage which traditionally form the main attraction of the opening evening of the rally and have been part of the event for 25 years."
Brian Walton, the chairman of the organising committee of the rally, added: "It is a desperately disappointing decision that we have had to take and certainly not one that we make without earnest consideration.
"Having looked at all the issues and available options we feel however that we have made the right move for our event. We have been placed in a difficult position mainly by circumstances and decisions over which we had little control."
Clerk of the Course David Gawne MBE said it was a sad day for the Island. He explained: "Having been involved for over 35 years this is one of the saddest days in my association with the rally.
"The whole organising team feels very flat right now. Rally Isle of Man is run almost entirely by volunteers who work tirelessly year round to stage an international motorsport event, renowned throughout the rallying world, whilst also maintaining their own day jobs.
"I pay tribute to everyone who works so hard on the event and who have taken it through many of the planning stages so far this year. I'd also like to pay tribute to the people of the Isle of Man for their support and tolerance over the past 48 years."
Update: Manx Auto Sport said it was working to organise a replacement event following the cancellation of Rally Isle of Man. For more on this story click here.
This story is part of isleofman.com's Review of the Year 2011.