Formula One Cancels Bahrain and Saudi Arabian Grands Prix Amid Ongoing Middle East Conflict, Projecting $200 Million Revenue Loss
On Sunday, Formula One announced the cancellation of the Bahrain Grand Prix, originally scheduled for April 12, and the Saudi Arabian Grand Prix, set for the following week. This decision, made jointly with the FIA, follows heightened tensions in the Middle East after coordinated military strikes by the United States and Israel on Iran, which prompted significant Iranian retaliation across the Gulf.
Stefano Domenicali, President and CEO of Formula One, stated, “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.” The cancellations will reduce the 2026 Formula One calendar from 24 to 22 races, resulting in a 33-day gap between the Japanese Grand Prix on March 29 and the Miami Grand Prix on May 3.
Impact on Formula One
The cancellation of these two races is expected to have substantial financial repercussions. Hosting fees are a critical revenue stream for Formula One, with Bahrain and Saudi Arabia contributing an estimated $115 million in fees alone. In 2025, hosting fees accounted for $824 million of Formula One’s total revenue of $3.87 billion.
According to analysis from Guggenheim Partners, the combined losses from the cancellations are projected to be between $190 million and $200 million in revenue, with approximately $80 million in earnings before interest, taxes, depreciation, and amortization (EBITDA). This loss represents around eight percent of the sport’s $997 million EBITDA, which, while significant, remains manageable for an organization of this scale.
Haas team principal Ayao Komatsu remarked on the impact of the cancellations, noting that while the worst-case scenario may not be “a significant impact,” it is certainly “a notable impact.” Teams had previously accepted a $450 million entry fee from Cadillac to join the grid in 2026, which provides some financial insulation against the losses incurred from the race cancellations.
Formula One explored the possibility of replacement races but ultimately decided against it, citing the existing television commitments and the welfare of the traveling workforce. The five-week break in the schedule may provide teams with a much-needed opportunity to address performance issues that have arisen in the early rounds of the season.
Consequences for Bahrain and Saudi Arabia
The ongoing conflict has severely affected both Bahrain and Saudi Arabia. Iranian strikes have targeted military installations and civilian infrastructure in Bahrain, while Saudi Arabia has faced attacks on military bases and oilfields. The repeated airspace closures have rendered the logistics of hosting major international events unfeasible.
The economic ramifications extend beyond the racing circuit. Northbourne Advisory has documented over 100 events across the Gulf that have been canceled, postponed, or suspended since the onset of hostilities. The Bahrain Grand Prix, in particular, has been a significant economic driver for the kingdom, generating approximately $100 million in economic activity across hotels, airlines, and hospitality.
Sheikh Salman bin Isa Al Khalifa, circuit chief executive, highlighted the importance of the Grand Prix to Bahrain’s economy, noting its role in attracting over 37,000 spectators on race day. The Gulf Hotels Group, which saw a 30 percent increase in net profit in the second quarter of 2025 due to Grand Prix demand, will not have a comparable event this April.
Saudi Arabia has similarly invested in international events as part of its economic transformation strategy. The Grand Prix, which debuted in Jeddah in 2021, has drawn audiences from 160 countries and generated around $240 million in economic impact, sustaining approximately 20,000 jobs during race weekends. Both nations maintain long-term contracts with Formula One, with Bahrain’s contract extending through 2036 and Saudi Arabia’s through 2030.
Broader Implications for the Gulf Region
The conflict’s impact may also extend to other races on the 2026 calendar. Strikes attributed to Iran have reportedly reached Azerbaijan, Qatar, and the UAE, raising concerns about the safety and feasibility of upcoming events in these regions. Azerbaijan is scheduled to host a Grand Prix on September 26, followed by Qatar on November 29 and Abu Dhabi on December 6.
Despite the challenges, Formula One’s global audience reached 827 million in 2025, reflecting a 12 percent year-on-year growth. While attendance figures at Middle Eastern venues are lower than those at larger events, their financial contributions significantly exceed those of venues with larger crowds. For instance, Abu Dhabi attracted 203,000 fans in 2025, while Qatar and Bahrain drew 163,000 and 105,000, respectively.
Abu Dhabi is expected to carry considerable symbolic and commercial weight in the remaining Gulf rounds. The Yas Marina Circuit hosted a record 339,000 fans during the last race weekend, bolstered by a three-way championship contest among top drivers.
Ticket Refunds
In light of the cancellations, both Bahrain and Saudi Arabian Grand Prix organizers have acted swiftly to address ticket holders. Fans who purchased tickets for the Bahrain Grand Prix through the official website will be offered a full refund or a credit for a future race. Instructions will be communicated directly via email.
For those who bought tickets through the official Saudi Arabian Grand Prix website, refunds will be processed automatically to the original payment method, requiring no action from the ticket holders. Both refund processes are expected to be completed within 10 to 21 working days.
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Published on 2026-03-17 14:13:00 • By FAME Delivered News Desk