F1 in Saudi Arabia
25th March 2022 saw the first session of the Saudi Arabian Grand Prix delayed. This was due to a missile strike at a nearby Aramco facility, with Houthi rebels claiming responsibility. What followed was an emergency meeting held that involved F1, FIA, teams, drivers and local officials. Whilst the drivers expressed serious concerns about the prospect of continuing the race weekend, reports emerged that drivers were told by local officials that they would face serious consequences should they not continue.
The first issue to consider is whether an attack on the Aramco facility constituted a credible threat for the Saudi Arabian Grand Prix. The facility was located approximately 10 miles from the circuit, and owned by Aramco. Aramco has signed a global partnership deal with Formula 1 in 2020, reportedly worth $450 million. Aramco also sponsors the Aston Martin F1 Team. On 25th March 2022, the attack occurred in several places with the Saudi officials stating that civilian housing was also hit. Additionally, since the start of conflict in 2015, Houthi rebels have fired 430 missiles, 851 drones at Saudi Arabia. Although the threat did not materialise, the fear of an attack on the circuit is credible as the missile strikes had hit a variety of targets.
Following the meeting, it was reported that drivers shared the view that they should not continue the race weekend, however it was reported that local officials informed the teams and drivers that there would be serious consequences should they choose not to race. Possible consequences included and were not limited to difficulty leaving the country. The insistence to continue racing is due to two factors, sportswashing and future implications. Firstly, the ongoing conflict has seen Saudi-led strikes that have killed tens of thousand people, displacing more than 100,000. The UN has further claimed it to be the largest humanitarian crisis. Furthermore, an F1 exodus would have negative implications on the country’s prospects to hold international sporting events. For example, following the 2009 attack on the Sri Lankan cricket team’s bus in Pakistan, international fixtures did not return to the country till 2018. Therefore, the continuance of the Saudi Arabian Grand Prix weekend strengthened the country’s position, with it now hosting the Usyk v Joshua boxing match, and the controversial LIV Golf invitational series.
The conversation around the Saudi Arabia Grand Prix has since been quiet, and it is likely that it will be revisited prior to Formula 1’s visit next year. It is worth noting that the Russian Grand Prix was cancelled relatively quickly after the Ukraine invasion, whilst the Vietnamese Grand Prix was abandoned completely due to political corruption charges. The former situation would suggest that the sport has bowed to international pressure, however both situations show that revenue generation is a key element. Saudi Arabian Grand Prix generates $65 million per grand prix and $40 million in sponsorship. In comparison, the Russian Grand Prix contract was worth $53 million, and the Vietnamese Grand Prix contract was worth $50 million. The strength of the Saudi Arabia Grand Prix to generate revenue is likely the main reason behind why it has not been abandoned.
The drivers and teams were told that they would be offered a bigger voice on the countries Formula 1 visits. However, it is unlikely that this offer can be separated from the potential revenue generation for the series. Additionally, the Saudi Arabian Grand Prix debate will likely be revisited but to no avail; unless external forces (global boycott) are at play as they were for the Russian Grand Prix.
Disclaimer: All views are my own and not those of my employer
