Formula 1 teams face financial blow after Bahrain and Saudi GP cancellations. The cancellation of the Bahrain and Saudi Arabian Grands Prix could have major financial consequences for F1 teams.

The cancellation of the Bahrain and Saudi Arabian Grands Prix carries a significant financial impact for Formula 1 teams—one that “cannot be ignored.”

The economic consequences linked to the removal of these two events from the calendar are substantial. Additional changes to the schedule—potentially affecting races in Qatar, Abu Dhabi, and beyond—could further worsen the situation for teams, particularly those with smaller budgets. A report by The Race has attempted to estimate the scale of the losses that each organization may face.

Geopolitical tensions disrupt the F1 calendar

The ongoing conflict in the Middle East is beginning to affect the global sporting landscape. The FIA and Formula 1 are closely monitoring developments involving the United States, Israel, Iran, and Lebanon. Neighboring countries, which have recently been impacted by missile activity, are currently not considered safe venues for hosting major international events.

For this reason, during the Shanghai weekend, the decision was announced to cancel—although not explicitly labeled as such—the Grands Prix of Bahrain and Saudi Arabia.

However, the situation remains fluid, and there are at least four additional races that could be at risk. These include the Middle Eastern rounds in Qatar and Abu Dhabi, as well as the Azerbaijan Grand Prix, given the country’s southern border with Iran. Furthermore, uncertainty still surrounds the readiness of Madrid, which may not yet be prepared to host its inaugural Formula 1 race.

A financial impact that cannot be overlooked

According to findings from The Race, Bahrain and Saudi Arabia contribute particularly high hosting fees to the overall Formula 1 budget. Combined, these two events are worth approximately $100 million, with around half of that amount distributed among the teams.

This means that their cancellation could result in each team losing several million dollars in expected revenue—an impact that is far from negligible in a cost-controlled era of Formula 1.

Haas team principal Ayao Komatsu acknowledged the seriousness of the situation, emphasizing that the financial consequences are meaningful. However, some of the losses may be partially offset by reduced logistical expenses, as teams will no longer need to travel to Sakhir and Jeddah.

Similarly, there will be a decrease in power unit mileage and a reduced demand for spare parts, which could help mitigate part of the financial strain. Even so, the overall balance remains negative, and teams will be hoping that no further disruptions to the calendar occur in the coming weeks.

The sport prepares to resume in Miami and the long-term question remains: can Formula 1 protect its bottom line if the regional instability continues to threaten its most profitable markets? For the teams already grappling with the massive costs of the 2026 regulation reset, every dollar counts more than ever.

While the $450 million Cadillac entry fee provided a recent boost to the teams’ accounts, the loss of consistent race revenue remains a concern for CFOs across the paddock. The focus now shifts to ensuring the remainder of the season can proceed without further financial erosion, as the “unwanted break” puts team sustainability to the ultimate test.