Formula 1 Owner Loses $2 Billion in Market Value Due to Iran War

SadaNews - The market value of the "Formula 1" Championship, owned by "Liberty Media", has decreased by more than $2 billion since the outbreak of the Iran War, amid growing concerns over the scheduled races in the Middle East, casting a shadow over a sport that is among the most popular around the world.

The "Formula 1" racing season is set to kick off next weekend in Melbourne, Australia, marking the first race of 24 planned for 2026. However, uncertainty surrounds two races scheduled next month in Bahrain and Saudi Arabia, as conflict escalates in the region. The season is set to conclude with the Qatar Grand Prix and Abu Dhabi Grand Prix at the end of the year.

Decline in Liberty Formula 1 Shares

Shares of "Liberty Formula 1", the company that owns the championship, have dropped by 10% this week.

The International Automobile Federation (FIA), the global governing body for motorsport, has decided to postpone the "Qatar 1812 kilometer" race, which was supposed to host the opening round of the world endurance championship for 2026 from March 26 to 28.

The conflict in the Middle East threatens to deal a blow to "Formula 1", which has been experiencing significant activity. The sport has attracted a large audience in the United States, partly due to the success of the "Formula 1: Drive to Survive" series aired on Netflix, as well as the film "Formula 1: The Movie". This momentum has contributed to the rise in the championship's stock price, as its market value still exceeds $21 billion. "Liberty Media" had paid $4.4 billion to acquire the franchise in 2017.

Middle East Races

The Middle East has become a key component in the "Formula 1" calendar, having hosted its first race in the region in Bahrain in 2004, and the championship calendar currently includes 4 races in the Middle East, including the season-ending races in Qatar and Abu Dhabi.

The Saudi Public Investment Fund owns a minority stake in the "Aston Martin Formula 1" team, while the Bahraini sovereign fund "Mumtalakat" and Abu Dhabi-based "CYVN Holdings" control the rival "McLaren" team.

This will not be the first time a race in the region has been canceled. The opening race of the 2011 season was scheduled to take place in Bahrain, but civil unrest in the Gulf state forced the FIA to postpone the Grand Prix just three weeks before its scheduled date.

The "Formula 1" season of 2026 also carries additional excitement with the introduction of new rule changes, including modifications to power unit regulations expected to reshape competition. The "McLaren" team has been the dominant team over the past two seasons, but the "Mercedes-Benz" team is considered the frontrunner to reclaim the Constructors' Championship title this year, while its British driver George Russell is likely to contend for the Drivers' Championship title.

Challenges in Racing

In contrast, other teams have faced difficulties adapting to the changes. The "Aston Martin" team, controlled by Canadian billionaire Lawrence Stroll, is experiencing challenges as the vibrations in its cars may put its drivers at risk of permanent nerve damage.

Practice sessions took place in Melbourne earlier today, with qualifying taking place tomorrow, and the main race scheduled for the day after tomorrow.