F1's Gulf Cancellations: The Legal Issues That Matter More Than Force Majeure
The recent announcement that Formula 1 has cancelled both the Bahrain and Saudi Arabian Grands Prix[1] - reducing the 2026 season to 22 races and leaving a five-week gap in the calendar between Japan and Miami - was not, in truth, a surprise. Both countries are among the Gulf states struck by Iran in retaliation for US-Israeli air strikes, and the writing had been on the wall for weeks. What was striking was the speed and scale of the commercial fallout. While fans of the sport may view this as a mere disruption to the racing calendar, the legal and commercial ripple effects are seen behind the scenes, far beyond the track. A Guggenheim Partners analyst note estimated the cancellations will cost the sport approximately $190 to $200 million in revenue and $80 million in EBITDA[2], with over $100m of that in lost hosting fees[3].
Many lawyers in the region will now be sending bulletins telling clients to check their force majeure clauses. This is not that bulletin. Yes, your force majeure clause needs to contemplate war. That has been true since well before Covid. If your precedents still don’t say it clearly, that is a separate and urgent conversation. But the more interesting legal questions, the ones that will generate the actual disputes, predominantly lie elsewhere.
This article examines the principal contractual and commercial law issues arising for rights holders, sponsors, broadcasters and event operators with exposure to sports contracts in the Gulf Cooperation Council[4] (GCC). While the analysis focuses on Formula 1, the legal issues discussed are broadly applicable across sports-related agreements in the region, including boxing, football, tennis and the expanding portfolio of global sporting events that have established the Middle East as a premier international sports hub.
Article Overview:
- Closed Airspace: The Problem Nobody Drafted For
- Hosting Agreements: The Long Game Gets Complicated
- Sponsorship: The Exposure Black Hole
- Broadcasters: Does Force Majeure Flow Downstream?
- Activation Partners: The Forgotten Parties
- Driver Agreements: A Detail Worth Noting
- Insurance: Where Your Coverage May Fall Short
- Beyond the Paddock: A Lesson For All Sports
- The Broader Point: Adopting A Risk Management Mindset
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- Tags: Commercial Law | Contract Law | Football | Force Majeure | Formula 1 | GCC | Insurance | Middle East | Motorsports | Saudi Arabia | Tennis | UAE
Written by
Steve Bainbridge
Omar Hegazy
Omar is Of Counsel at Greenberg Traurig LLP, based in Dubai. He has over 20 years’ experience advising on varied commercial and regulatory matters across the Middle East. With almost half of his legal career in-house, he brings an invaluable 360-degree view and commercial nous. He regularly advises corporates and government clients on complex venue projects, events management, sponsorships, policy, privatization of sports assets, and more.
Abigail Carpenter
Abigail is a Senior Associate at Greenberg Traurig LLP based in Dubai. She has over a decade of experience advising on high-profile deals across the global sports industry. Abigail advises brands, rightsholders, and sportspeople on a broad range of commercial contracts. She has deep experience working with Formula 1 drivers, Premier League footballers, and global sports stars, providing guidance on on-track driving agreements, on-field transfers, and off-field image rights agreements and structures, as well as partnership and endorsement deals.
