Formula One Cancels Bahrain and Saudi Arabian Grands Prix Amid Middle East Tensions, Projecting $200 Million Revenue Loss
Formula One has officially canceled the Bahrain Grand Prix, scheduled for April 12, and the Saudi Arabian Grand Prix, set for the following week. This decision, made in collaboration with the FIA, arises from escalating tensions in the Middle East following coordinated military actions by the United States and Israel against Iran, which have led to significant Iranian retaliatory strikes across the Gulf region.
Stefano Domenicali, President and CEO of Formula One, stated that while the decision was challenging, it was necessary given the current circumstances in the Middle East. The cancellations will reduce the 2026 Formula One calendar from 24 to 22 races, creating 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 considerable financial implications. Hosting fees represent a crucial revenue source for Formula One, with Bahrain and Saudi Arabia contributing approximately $115 million in fees. In 2025, hosting fees accounted for $824 million of Formula One’s total revenue, which reached $3.87 billion.
Analysis from Guggenheim Partners estimates that the combined revenue losses from the cancellations could range between $190 million and $200 million, with around $80 million in earnings before interest, taxes, depreciation, and amortization (EBITDA). This loss constitutes about eight percent of the sport’s $997 million EBITDA, a figure that, while significant, remains manageable for an organization of Formula One’s scale.
Haas team principal Ayao Komatsu acknowledged the impact of the cancellations, indicating that while the worst-case scenario may not be “a significant impact,” it is still “a notable impact.” Teams had previously accepted a $450 million entry fee from Cadillac to join the grid in 2026, which may provide some financial buffer against the losses incurred from these race cancellations.
Formula One considered the possibility of replacement races but ultimately decided against it, citing existing television commitments and the welfare of the traveling workforce. The five-week break in the schedule may allow teams to address performance issues that have emerged 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 experienced attacks on military bases and oilfields. The repeated closures of airspace have made hosting major international events logistically 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 has historically been a significant economic driver for the kingdom, generating around $100 million in economic activity across hotels, airlines, and hospitality sectors.
Sheikh Salman bin Isa Al Khalifa, circuit chief executive, emphasized 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 reported 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 attracted audiences from 160 countries and generated approximately $240 million in economic impact, sustaining around 20,000 jobs during race weekends. Both nations have 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 these 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 example, 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 competitive championship among top drivers.
Ticket Refunds
In response to the cancellations, organizers of both the Bahrain and Saudi Arabian Grands Prix have acted promptly 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, with instructions 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 Editorial Desk
