F1 News: Permane hopeful of Gulf race return amid financial hit

(GMM) Racing Bulls boss Alan Permane (pictured) says Formula 1 is still hoping to reschedule the cancelled Bahrain and Saudi Arabian grands prix – despite growing logistical and financial complications.

“We are keeping an eye on the calendar and are very hopeful that there is a possibility of rescheduling one or both of these races later in the year,” he said.

“We don’t know anything. Obviously, until the situation in the Middle East calms down, this won’t happen. If it were to materialize, however, we could have a very busy end to the season.”

The comments come amid mounting pressure – particularly from Saudi Arabia – to find space later in the calendar, echoing recent claims by Dutch pundit Robert Doornbos that Jeddah could yet return in December.

However, Permane admits the financial implications of the cancellations are already being felt across the grid.

“The cancellation of two Grand Prix events has a significant impact on the teams’ budgets,” he said.

“On the one hand, if these races don’t take place, the teams will save money because we won’t have to send team staff anywhere.

“There won’t be any expenses for flights, hotels, or cargo transportation.

“However, the overall balance will still go into the red, and that’s bad news.”

Indeed, a report by Auto Motor und Sport suggests the loss of Bahrain and Saudi Arabia – among the highest-paying events – could remove close to 100 million euros from Formula 1’s revenue pool this year.

With roughly half of that distributed to teams, the hit is expected to run into millions per outfit.

At the same time, rising fuel costs linked to the Middle East conflict are adding further strain.

“We haven’t seen any specific figures yet, but later in the season, teams’ costs will inevitably increase due to rising fuel prices,” Permane explained.

“But everyone’s fuel costs have already increased, and the same will soon happen with aircraft.

“And all of this will inevitably impact F1 teams. Because all these costs are factored into the budget cap.”