F1 faces $200m revenue loss after Bahrain and Saudi Arabian GP cancellations

Following the confirmation that the Bahrain and Saudi Arabian Grands Prix have been cancelled, the financial scale of Formula 1’s decision is now becoming clear.

The cancellations come amid the ongoing conflict in the Middle East, after the United States and Israel launched strikes against Iran at the end of February. While Formula 1 and the FIA have stressed that safety takes precedence, the commercial consequences are significant.

The immediate sporting and logistical impact

The conflict has already disrupted the 2026 season beyond the two cancelled events. Key transit hubs in the Gulf region, including Dubai and Doha, have been closed, forcing the rerouting of team personnel and freight.

In Bahrain specifically, the residential district of Juffair in Manama — where many F1 personnel traditionally stay during the race weekend — hosts a US naval base, underlining the security sensitivities surrounding the decision.

With the calendar now reduced to 22 races, the sporting rhythm of the season is altered. However, the greater shock lies in the financial fallout.

A $190–$200 Million blow to revenue

According to a Guggenheim Partners analyst note, the cancellation of the two Grands Prix is expected to cost Formula 1 between $190 million and $200 million (£143–£151 million) in revenue, along with $80 million (£60 million) in EBITDA.

While substantial, the loss is not existential. Formula 1 generated $3.87 billion in total revenue last year, cushioning the immediate impact. Nevertheless, the figures highlight the strategic importance of Middle Eastern events to the sport’s commercial model.

How valuable are Middle East races to F1?

There are currently five Middle Eastern rounds on the Formula 1 calendar: Bahrain, Saudi Arabia, Azerbaijan, Qatar, and Abu Dhabi. Collectively, the region contributes more than $250 million (£188 million) in annual promoter fees, based on Guggenheim estimates.

The reported breakdown is as follows:

• Bahrain: $45 million (£33 million)
• Saudi Arabia: $55 million (£41 million)
• Qatar: $55 million (£41 million)
• Abu Dhabi: approximately $42 million (£31 million)
• Azerbaijan: $57 million (£43 million)

For comparison, long-standing European venues pay considerably less. Silverstone contributes around $26 million (£19 million), while Monza pays between $20–$30 million (£15–£22 million).

The disparity underscores why Gulf races hold such weight in Formula 1’s financial structure. Even with revenues approaching $4 billion annually, the removal of just two events in this region translates into a nine-figure impact.

Ultimately, while safety concerns have driven the decision, the episode lays bare the economic reality: Middle Eastern Grands Prix are not just calendar fixtures — they are pillars of Formula 1’s commercial foundation.