Formula One counting losses as both Bahrain, Saudi GP are cancelled

The cancellation of April’s F1 Grand Prix races in Bahrain and Saudi Arabia, much as expected it was due to the escalating conflict in West Asia, has sparked off a counting of costs. It was on Saturday that Formula One confirmed the cancellation of two of the early races of the season while there is cautious optimism that the ones in Qatar and Abu Dhabi at the back-end of the calendar will go ahead.   

A Forbes report quotes Guggenheim’s findings that the loss of the two races will result in a revenue loss of $190-200 million and $80 million of EBITDA (earnings before interest, taxes and amortization). Given the logistical challenge that each F1 race entails, it’s anybody’s guess whether these two races can be held later this year — which will make the calendar a 22-race affair this year.

These four races in West Asia had turned out to be major events in the country’s social and tourism calendar — bringing in foreign exchange with heavy inflow of tourism with the Sakhir GP in Bahrain proving to be a pioneer of sorts. The Finalissima between Spain and Argentina, the reigning Euro and Copa America champions scheduled in Qatar on 27 March, had been already cancelled last weekend.

The striking off of two races leaves F1 with a five-week hole between the third round of the new season in Japan on March 29 and the Miami Grand Prix on May 3. ‘’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,’’ Stefano Domenicali, president and CEO of Formula 1, said in a statement.

‘’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.’’

Mohammed Bin Sulayem, the FIA president from the UAE and a decorated rallying ace himself, 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.

‘’We continue to hope for calm, safety and a swift return to stability in the region, and my thoughts remain with all those affected by these recent events. 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. My sincere thanks to the promoters, our partners, and our colleagues across the championship for the collaborative and constructive approach that has led to this decision."

Both Bahrain and Saudi have been parties in the war between Iran and the United States and Israel.