Costly cancellations for F1 teams

Costly cancellations for F1 teams

Racing Bulls team principal Alan Permane has confirmed that Formula 1 remains hopeful of rescheduling the Bahrain and Saudi Arabia Grands Prix, canceled due to the geopolitical context.

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Despite this goal, the situation remains complex, both logistically and financially, for F1 itself as well as for the teams.

The idea of some races returning at the end of the season is circulating in the paddock, notably in Jeddah, with a scenario mentioned of several consecutive events in December.

But concretely, fitting these events into an already packed calendar represents a major challenge for both the teams and the organizers.

Loss of revenue

Economically, the impact is already tangible. Permane points out that the cancellation of two races directly deprives the teams of part of the commercial revenues generated by the sport. Even though some operational expenses are avoided (travel, logistics, accommodation), the overall loss remains significant. A large portion of Formula 1’s revenues is redistributed to the teams, so each canceled Grand Prix results in a loss of several million.

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Added to this is an unfavorable inflationary context. The rise in fuel and air transport costs mechanically increases budgets, in an environment constrained by the budget cap. In other words, even with fewer races, structural expenses continue to rise, further reducing the teams’ room for maneuver.

Extending the season?

Formula 1 therefore finds itself in a delicate situation: trying to preserve its calendar to limit financial losses, while dealing with increasingly heavy geopolitical and logistical constraints.

Depending on the evolution of the conflict in the Middle East, Liberty Media is considering extending the championship into December, postponing the Abu Dhabi finale to make way for the Saudi Arabian Grand Prix, particularly profitable for the sport thanks to a lucrative contract with the oil company Aramco.

On the other hand, the scheduled event in Bahrain is not expected to be rescheduled, with Sakhir nevertheless regaining its status as the season opener in March 2027 due to the shift in the Ramadan period that granted this privilege to Melbourne this year.

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