Formula 1’s decision to cancel the Bahrain and Saudi Arabian Grands Prix reduces the 2026 calendar from 24 races to 22 and removes two major commercial events from the early part of the season.
The races normally follow the Aramco Japanese Grand Prix and their removal now leaves a five-week gap between Suzuka and Miami.
For F1’s commercial ecosystem, each race weekend represents a key revenue and exposure platform. Broadcast inventory, sponsor branding, corporate hospitality and partner activations are all built around the cadence of the calendar.
“While this was a difficult decision to take, it is unfortunately the right one at this stage considering the current situation in the Middle East,” said Stefano Domenicali, President and Chief Executive Officer of F1.
“I want to take this opportunity to thank the FIA as well as our incredible promoters for their support and total understanding as they were looking forward to hosting us with their usual energy and passion. We cannot wait to be back with them as soon as the circumstances allow us to do so.”
Removing two events in quick succession therefore eliminates two major commercial touchpoints for the sport and its partners.
The cancellation of the Gulf Air Bahrain Grand Prix was driven primarily by security concerns amid escalating tensions in the region.
I want to take this opportunity to thank the FIA as well as our incredible promoters for their support and total understanding as they were looking forward to hosting us with their usual energy and passion.
Stefano Domenicali
Bahrain has been targeted during the ongoing conflict involving Iran, raising concerns over the safety of teams, staff and spectators.
The situation surrounding the STC Saudi Arabian Grand Prix in Jeddah is understood to have been different. Sector understands the race was cancelled largely due to logistical disruption as the wider instability in the region began to affect freight movement and event preparation.
F1 was approaching a logistical deadline for freight shipments to Bahrain, forcing the championship to take a decision before further cargo was dispatched.
Beyond the sporting implications, the cancellations carry significant financial consequences.
Race-hosting fees are one of the largest sources of revenue for F1’s commercial rights holder, Liberty Media. Promoters typically pay between $30m and $60m annually to host a race.
Bahrain and Saudi Arabia are among the highest-paying promoters on the calendar.
Industry estimates place Bahrain’s annual hosting fee at around $45m, while the Saudi Arabian Grand Prix is understood to pay more than $55m per year.
Combined, the two events contribute well over $100m annually in race-hosting revenue to F1.
Sector understands the hosting fees for the cancelled races had already been paid. It remains unclear whether the promoters will receive full refunds or whether negotiations will instead focus on extending the existing agreements by an additional year.
Both races are tied to long-term deals with the championship. Bahrain’s contract runs until 2036, while Saudi Arabia’s agreement runs until at least 2030 before a planned move to the new Qiddiya circuit currently under construction.
For teams and sponsors, the commercial impact extends far beyond promoter fees.
Some teams with partners in the region would have viewed the races, particularly the Saudi Arabian Grand Prix in Jeddah, as among their most important activation opportunities of the season.
Major sponsors frequently use the Middle Eastern races as platforms for hospitality programmes, regional marketing campaigns and client entertainment.
Sector understands that many of those activations had already been shelved in the weeks leading up to the cancellation as the situation in the region deteriorated.
The loss of two races therefore removes a significant portion of planned sponsor activity in the region.
The disruption is also being felt by marketing and activation agencies working across the F1 sponsorship ecosystem.
Much like during the period without races during the COVID-19 pandemic, agencies will now have to demonstrate their value to clients through alternative approaches.
Without race weekends in the Middle East next month, traditional trackside activations disappear. Agencies are now likely to shift towards digital campaigns, fan engagement initiatives and regional marketing programmes that do not rely on the race environment.
The cancellations also underline the strategic importance of the Middle East to F1’s modern business model.
The region now hosts four races on the calendar in Bahrain, Saudi Arabia, Qatar and Abu Dhabi. That represents one sixth of the championship schedule.
These events are typically supported by government-backed promoters and long-term hosting agreements, making them some of the most financially secure races on the calendar.
The region is also embedded across the sport’s wider commercial ecosystem. Bahrain’s sovereign wealth fund Mumtalakat owns the McLaren Mastercard F1 Team, while Saudi energy giant Aramco is both a global F1 partner and title sponsor of the Aston Martin team.
For the moment the disruption to the calendar appears manageable. F1 retains two Middle Eastern races later in the season and the extended gap between Japan and Miami does not threaten the overall structure of the championship.
However, the loss of two races worth more than $100m in hosting fees highlights how financially important the region has become to the sport, while a host of sponsors and partners miss out on the chance to activate in either key or home markets.
With geopolitical tensions still evolving, the cancellations also raise wider questions about the balance between global expansion and political risk within F1’s increasingly international calendar.
