What are the economic consequences of canceling the Grand Prix races in the Middle East ?

The current geopolitical tensions have more than just diplomatic consequences. Proof of this is the cancellation of the 2026 Bahrain and Saudi Arabian Grand Prix races, which is disrupting not only the Formula 1 calendar but also its economy.

 

While the Bahrain Grand Prix was supposed to take place last Sunday and the Saudi Arabian Grand Prix on April 19, the conflict in the Middle East has led to their outright cancellation. Behind the absence of these two events lies the magnitude of the financial and logistical stakes that shape the Formula  championship.

 

An immediate loss of revenue for Formula 1

 

The cancellation of the races scheduled for Bahrain and Saudi Arabia deprives Formula 1 of particularly high revenues. These two races are among the most lucrative on the calendar thanks to the hosting fees paid by local promoters, estimated at approximately $53 million for Bahrain and $65 million for Saudi Arabia.

 

These sums constitute an essential part of the championship’s business model: approximately 50% of this F1 revenue is redistributed to the teams. Their loss therefore leads to a decrease in the bonuses paid to the teams. Each team could thus lose several million dollars over the season, particularly weakening the smaller teams.

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Read also > [LUXUS MAGAZINE] 2026 Australian Grand Prix : George Russell opens the season with a victory

 

Featured photo : © Getty Images

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Anthony Conan
Graduated as a multimedia journalist in 2019, Anthony Conan has multiplied his experiences, notably as an editorial assistant at TF1 and as a radio journalist at RCF Bordeaux. He specializes in video editing in addition to writing, and has developed a particular interest in economics.

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