Just a few kilometers from Mecca, in Jeddah, last Sunday should have been a big day: racing cars at full speed, the world watching, hotels full, the city - rather boring - at its peak. But none of that happened. Silence and emptiness. Formula 1 did not go to Saudi Arabia because of the Iran War, the Grand Prix was canceled, and there was only stillness at the Corniche street circuit.
However, far away, there was a lot of movement. In the Colorado offices of Liberty Media, the organizing company of the World Championship, the cancellation of the races in Bahrain and Saudi Arabia required extra work to fix the mess. The championship lost over 200 million euros between organization fees and associated sponsorships and still does not know if it will be able to go to Qatar or Abu Dhabi to close the season. Gulf countries pay more than the rest to host a race - Saudi and Qatar exceed 50 million, Bahrain is around 45 - they provide an essential part of the venue revenues, and their stability has become an important factor. Liberty even lost nearly 12% in the stock market after the cancellations were announced.
Nevertheless, the company insists that there is no crisis and, to demonstrate this, it relies on its revenue structure. In 2025, Formula 1 generated close to 3.870 billion dollars, and only just over a quarter came from what the organizing countries pay. The rest came from more stable sources: TV rights - which remain intact as long as the calendar exceeds 16 races - and global sponsorship agreements, designed for the long term and not linked to a specific race.
The interpretation of the losses should, therefore, be optimistic. Even if Grand Prix races are canceled, the core of the business continues to operate, and the championship retains its ability to generate income on a global scale. Even within the paddock, the effect is not linear. Under the current budget cap, each race that disappears from the calendar reduces logistical costs - fewer intercontinental flights, less material transport, fewer staff members traveling - and frees up resources that teams can redirect to technical development. In a sport where differences are measured in milliseconds, that saving can have a competitive impact. In fact, it is not unreasonable to think that a break could alter hierarchies and that when the season resumes in Miami on May 3, there will be teams that have been able to take advantage of the moment.
The impact is different in MotoGP. The motorcycle racing championship generates lower figures than Formula 1 and depends more directly on each race. In 2024, it closed its revenue at 462 million euros, 5% less than the previous year due to the cancellation of the Grand Prix races in Argentina and Valencia. Its structure is more fragile because there are no major global contracts capable of cushioning an extended break, but it is saved from this crisis because its calendar is less diversified. This season, the championship only has one trip to the Gulf on its calendar, the Qatar Grand Prix, and still hopes to save it with the postponement until November.
What is more concerning is the medium term. The championship's perspective has always been to expand towards the Middle East - a race in Saudi Arabia was planned from 2028 onwards - and the current crisis has cast doubt on that growth. The internationalization of the motorcycle championship, crucial for increasing revenues and reducing its European dependence, is now on hold. If Formula 1 has managed to withstand the impact of the Iran War, it remains to be seen how it will affect the future of MotoGP.