Formula 1 has officially cancelled its Bahrain and Saudi Arabia grands prix from the 2026 calendar as the Iran conflict continues. Liberty Media's stock fell about 7% after the news. The move affects hosting fees but leaves core revenue streams intact.
The removals mean F1 loses two early-season flyaway races, which are among the most expensive for teams due to long-haul freight and back-to-back travel across continents. Teams benefit from reduced costs under the cost cap, which sets a baseline for a 21-race calendar and adds $1.8 million per extra race. This creates capacity to redirect resources toward performance development amid new aerodynamic and power unit rules. Efficient teams at the cap ceiling stand to gain the most from this shift. Sponsors and broadcasters remain unaffected, as their deals cover the full championship season rather than individual events. Prize money distribution also occurs at season's end. Bahrain and Saudi Arabia contributed around $115 million in combined annual hosting fees, or 14% of F1's total $824 million from such income, according to Guggenheim Partners. As state-backed events, they likely include force majeure clauses that limit payments during conflicts beyond promoters' control. Promoters face the primary financial hit from lost local economic activity. F1's structure, reoriented over the past decade toward championship-level deals, absorbs the calendar contraction without resetting major contracts.
