07 March,2011 07:57 AM IST | | Kunal Shah
How cancellation ofu00a0the season's first Grand Prix has affected several aspects of Formula One Spaniard Fernando Alonso drives his Ferrari to victory in Sakir during last year's Bahrain Formula One Grand Prix. PIC/Getty Images
The season-opening Bahrain Formula One Grand Prix was cancelled due to political unrest in the country. F1 took a big hit due to the postponement. The GP might now be re-scheduled towards the end of the season, between Abu Dhabi and Brazil. However, let's take a look at how the cancellation effects the key stakeholders of the sport.
F1 teams
The cancellation might work in the teams' favour. With the additional fortnight before the start of the season's first F1 GP, the teams get extra time to get their cars in shape and order. The new Pirelli tyres, the adjustable rear wing and of course the KERS mean that teams need ample time to understand their machines.
F1 drivers
Nothing really changes from the driver's perspective. Had Bahrain been towards the end of the season, the cancellation could have had an effect on the outcome of the World Championship.
The drivers will use the additional fortnight training or doing simulator work at the F1 factories.
Sponsors
If you're an F1 sponsor, this could be a mixed bag situation. The sponsorship contract would cover the risk of your investment with the cancellation of Bahrain, which means that teams would be penalized over them missing a race. This would in turn mean that your sponsorship amount for 2011u00a0 would well be reduced.
However, if your sponsorship program is tailored around the Bahrain GP, then this cancellation would be a significant loss. (eg: The Bahrain sponsors would save their $6 million sponsorship investment, but would lose out on hosting their guests at an F1 race). While the sponsors could benefit from reduced costs, the teams will lose an estimated $40 million as per Formula Money reports, with Ferrari expected to be the biggest losers with an $11 million loss in sponsorship money.
F1 management
They stand to be the biggest losers. Bahrain pays the Formula One management an estimated $25 million to host the 'Bahrain Grand Prix'.
The royal family of Bahrain also pays an additional $12 million to have their GP as the season-opening GP.
Bernie Ecclestone, in an unexpected move declared that he wouldn't be charging Bahrain the 'hosting fees' for 2011.
This would mean a direct $40million loss for Ecclestone and his company.
Bahrain
The estimated loss of tourism for Bahrain's economy is about $100 million.
The previous years have seen Bahrain attract over 100,000 fans over the three day GP weekend with 22% of these fans visiting from overseas.
Fans
Those who had planned to catch Bahrain's F1 action on television, will only have to wait longer.
However, if you've planned an F1 holiday in Bahrain and have bought GP tickets, I hope you get your ticket amount refunded.
So the cancellation of the Bahrain GP won't have a significant difference in the performance of cars and drivers, but already has had a massive impact on the financials that govern the sport. One hopes that normalcy is restored in Bahrain, first the country and then Formula One.
