The Saudi Arabian and Bahraini Grands Prix will not be happening next month, Formula 1 said last night. The decision wipes out two early-season races and inflicts a financial blow on Formula 1.

What’s happening? F1 formally canceled the 12 April race in Bahrain and the 19 April event in Jeddah. Neither race is expected to be replaced or rescheduled as the back end of the calendar seems crowded, unnamed sources told The Athletic.

What they said: “The FIA will always place the safety and wellbeing of our community and colleagues first. After careful consideration, we have taken this decision with that responsibility firmly in mind,” head of the governing body Mohammed Ben Sulayem said. “Bahrain and Saudi Arabia are incredibly important to the ecosystem of our racing season, and I look forward to returning to both as soon as circumstances allow.”

Why it matters

It’s a substantial revenue hit for the sport. Analysts are saying the lost races can cost Liberty Formula One somewhere between USD 190-200 mn in lost revenue, alongside an estimated USD 80 mn hit to EBITDA.

Gulf states are critical financial drivers for F1: The combined hosting fees for Bahrain and Saudi Arabia are estimated to exceed USD 100 mn alone.

Teams sharing in the revenues will also be hit: McLaren CEO Zak Brown acknowledged the lost races will “probably” dent team budgets, but said the financial impact is the “least of our concerns” given the geopolitical reality.

What’s next?

The grid now faces an unexpected extended break, leaving an empty 35-day gap in the calendar between the Japanese and Miami Grands Prix. An immediate logistical headache is retrieving team freight and equipment that have been stranded in Bahrain since pre-season testing concluded.

The cancellations could also have a chilling effect on sporting event organizers in the region in the near term. The World Endurance Championship already decided earlier this month to postpone its season opener in Qatar until October.

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