How Bahrain & Saudi GP cancellations could cost Formula 1 millions? Financial impact explained
(Courtesy : F1)
Ongoing situations in the Middle East region forced the cancellation of the two races.
The Formula 1 races scheduled for April 12 in Bahrain and April 19 in Saudi Arabia have been removed from the calendar. The announcement was made during the Chinese Grand Prix, citing rising geopolitical tensions and security concerns in the Middle East.
The decision was made jointly by Formula 1, the FIA, and the local race promoters as the ongoing conflict in the region raised serious safety risks for drivers, team members, officials, and spectators.
With the cancellations, there will be a break of more than 30 days with no Formula 1 action, meaning fans won’t see racing again until the Miami Grand Prix, following the Japanese GP. The season has also been shortened and will now consist of 22 races.
Let us now take a detailed look at how the cancellation is going to affect the business side of F1, with a major loss of revenue.
Financial impact
According to some estimates, the cancellation has risked up to $200 Million in revenue from hosting fees and broader commercial impacts. According to Guggenheim, a significant investor and financial analyst of F1, the two cancellations would result in a loss of $190M-$200M in revenue and $80M in EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation).
The investment bank also noted that the cancellation doesn’t affect the valuation of the Liberty Media-owned property.
Notably, circuits that secure a spot on the Formula 1 calendar are required to pay an annual sanctioning fee to host a Grand Prix. These agreements are one of the sport’s most stable and predictable income sources.
In 2025, race hosting fees generated roughly $824 million for F1, accounting for about 27 per cent of its total revenue of $3.87 billion, with Bahrain and Saudi Arabia estimated to contribute a combined $115 million solely through hosting payments.
The overall commercial impact extends far with additional revenue through sponsorships, hospitality, logistics, and various streams that are only realised when an event is held. The cancellation will not only impact the hosting fees but also sponsorship revenues.
In regard to ticket refunds, organisers in both Bahrain and Saudi Arabia have moved quickly to address the concerns of tens of thousands of fans who had already invested in attending the races.
In Bahrain, fans who made their purchases through the official platform will have the option of receiving a full refund or converting the amount into credit for a future event, while fans who bought tickets through the official Saudi Arabian GP website will have their payments automatically refunded to their original method, without needing to take any additional steps.
The 2025 Bahrain Grand Prix drew a record-breaking crowd of 105,000 across the weekend, including 37,700 spectators on race day. Meanwhile, official figures for the 2025 Saudi Arabian Grand Prix were not disclosed, although the event typically attracts between 150,000 and 200,000 attendees.
Impact on host cities
While Formula 1’s strong commercial position is expected to absorb the financial impact of the cancellations, local economies tied to the Grands Prix are likely to suffer. Tourism, which depends on race weekends, will take a hit, while promotional investments and regional hospitality services are also set to incur losses ranging into millions.
Speaking at a fireside chat during the launch of The Business Year: Bahrain 2026, Bahrain circuit CEO Sheikh Salman bin Isa Al Khalifa stated in December that the Grand Prix weekend drives roughly $100 million in economic activity across sectors such as hotels, airlines, and hospitality.
Both countries remain tied to long-term agreements with Formula One, with Bahrain’s deal running until 2036 and Saudi Arabia’s through 2030. Once the conflict is resolved, the two races are likely to return to the F1 calendar.
Why did Formula 1 cancel the Bahrain & Saudi Arabian GPs?
Both Grand Prix were cancelled due to rising geopolitical tensions and security concerns in the Middle East.
What is the estimated revenue loss to F1 due to the cancellation?
According to Guggenheim, a significant investor and financial analyst of F1, the two cancellations would result in a loss of $190M-$200M in revenue and $80M in EBITDA.
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Abhijit Singh is a budding sports journalist with over three years of experience in the field, and a photographer capturing stories through his lens since 2018. With a background in philosophy and political science, he brings a thoughtful, analytical edge to his reporting where every word is guided by curiosity and intent. Whether he's capturing the emotion of a moment or unpacking the deeper narratives within the game, Abhijit’s work is rooted in insight and passion. When he’s not covering sports, he’s often exploring new ideas through reading, traveling or just procrastinating.