- Saudi Arabia and Bahrain both pay north of US$50m per year to host F1
- Promoter fees contribute roughly 27% of F1’s total revenue
- Qatari rounds of MotoGP and WEC rescheduled for November
As anticipated, Formula One has confirmed that this year’s Bahrain and Saudi Arabian Grands Prix will not take place due to the ongoing conflict in the Middle East.
Both races were set to take place in April and, with no replacements lined up, there will now be a five-week gap in the Formula One schedule between visits to Japan on 29th March and Miami on 3rd May.
The decision was taken in full consultation with the International Automobile Federation (FIA) and the promoters. It also affects planned rounds of the Formula Two, Formula Three and F1 Academy seasons.
But, outside of the loss of on-track action, this decision has serious financial implications for the sport.
How much will F1 lose?
According to an analyst report released by Guggenheim, Formula One could be set to lose up to US$200 million due to the loss of the two races.
Reportedly, Saudi Arabia pays in the region of US$55 million annually to host the championship, just above the reported US$52 million that Bahrain contributes. These are some of the most lucrative contracts on the current calendar, which expire in 2030 and 2036 respectively.
In total, promoter fees contribute in the region of 27 per cent of Formula One’s total revenue, or US$1.03 billion, so any cancellations are significant to the series’ bottom line.
On top of these base fees, Formula One would also miss out on money through sponsorship and media rights revenue, which explains Guggenheim’s sizeable estimation.
This will affect Formula One’s Q2 revenue figures this year, which hit US$1.2 billion in 2025. Last year’s figure was a 41 per cent year-over-year (YoY) increase thanks to the success of the F1 movie, so this year’s results could represent a considerable fall in revenue.
How will teams be affected?
The loss of two races will be frustrating for teams looking to build momentum at the start of a new regulation phase, but there is also the silver lining of increased development time to refine technical gremlins.
For example, Aston Martin are struggling with a drastically underperforming engine from Honda, while neither McLaren started the Chinese Grand Prix due to separate issues with their Mercedes engines.
However, the loss of the Bahrain Grand Prix in particular will be frustrating as teams often use it to benchmark progress thanks to the preseason testing that is held at the circuit. Instead, they will have to rely on simulation and wind tunnel data.
Both Saudi Arabia and Bahrain are also heavily invested in Aston Martin and McLaren through their respective sovereign wealth funds. The Qatar Investment Authority also owns a portion of Audi.
What’s clear is that Formula One and its teams rely heavily on the Middle East for their revenues, so any financial issues that arise during this conflict could have serious knock-on effects. Any continuation of the conflict will affect Formula One’s visits to the likes of Azerbaijan, Qatar and Abu Dhabi, too.
How have senior executives reacted?
“While this was a difficult decision to take, it is unfortunately the right one at this stage considering the current situation in the Middle East,” said Stefano Domenicali, president and chief executive of Formula One.
“I want to take this opportunity to thank the FIA as well as our incredible promoters for their support and total understanding as they were looking forward to hosting us with their usual energy and passion. We cannot wait to be back with them as soon as the circumstances allow us to do so.”
Mohammed Ben Sulayem, president of the FIA, said: “The FIA will always place the safety and wellbeing of our community and colleagues first. After careful consideration, we have taken this decision with that responsibility firmly in mind.
“We continue to hope for calm, safety and a swift return to stability in the region, and my thoughts remain with all those affected by these recent events.
“Bahrain and Saudi Arabia are incredibly important to the ecosystem of our racing season, and I look forward to returning to both as soon as circumstances allow. My sincere thanks to the promoters, our partners, and our colleagues across the championship for the collaborative and constructive approach that has led to this decision.”
Which other motorsport series are affected?
It’s not just Formula One that has had to reconsider its schedule as both MotoGP and the World Endurance Championship (WEC) were supposed to visit Qatar soon.
Unlike Formula One, both championships have rescheduled these races to a later date – although Formula One’s statement didn’t explicitly rule this out happening in due course.
For MotoGP, the Qatar Grand Prix will be moved from April to 8th November, which also has implications on the end of the season. The races in Portugal and Valencia will be shifted to 22nd November and 29th November, respectively.
Meanwhile, the Qatar 1812km, which was set to open the 2026 WEC season, will now take place from 22nd to 24th October. The season will now start with the 6 Hours of Imola from 17th to 19th April.
It’s understandable that series without the financial might of Formula One would have to reschedule the races rather than cancel them, but it appears premature to confirm dates while the conflict is still ongoing.
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