11:24 AM EDT, 03/23/2026 (MT Newswires) -- The global sports industry's liquidity could take a hit from event cancelations in the Middle East should the Iran war drag on, Morningstar DBRS said in a Monday client note.

Escalating tensions in the region mean near-term event cancellation is now a base-case scenario, according to the rating agency. The conflict has already seen Formula One ( FWONB ) cancel races in Bahrain and Saudi Arabia that were scheduled for April, with the Union of European Football Associations calling off a soccer match previously set to be played in Qatar later this month.

"These cancellations are likely the first in a series of events that may need to be halted if the conflict persists, challenging the sustainability of one of the key growth levers relied on by some of the main global sports organizations," Morningstar DBRS said.

In a social media post on Monday, President Donald Trump said the US will postpone military strikes on Iran's energy infrastructure for five days, amid ongoing talks between the two countries. The US-Israel war with Iran started at the end of last month and has impacted several Gulf countries.

The Middle East is a systemic liquidity source for global sports franchises, and the loss of high-fee events represents a "significant near-term cash flow shock" for teams, broadcasters and sponsors, according to Morningstar DBRS.

F1 grand prix races in the Gulf carry hosting fees that are among the world's highest, meaning losing two races removes tens of millions of dollars from promoter revenue and impacts downstream distribution, the report showed. Liberty Media is the parent company of Formula One Group ( FWONB ).

Football has been a key target of Gulf state investment, so leagues are likely to see a ripple effect if major sporting events continue to be canceled, the rating agency said.

"We do not anticipate a material structural deterioration in the sports sector at this stage, but rolling cancellations over the next 12 months could lead to a short-term, punctual weakening of credit metrics, as replacement programming may generate lower margins; sponsors might have to reassess renewals or activation commitments; and fixed costs -- such as rights fees, production, and logistics -- are often still incurred," the rating agency said.

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