The upcoming Las Vegas Grand Prix is all set to take place this year on the streets of Sin in November. The Las Vegas Convention and Visitors Authority has made an investment of $19.5 million over a span of three years to sponsor the event. With Liberty Media, the parent company of Formula 1, already pouring $500 million into the event’s infrastructure, there are high expectations for big returns. However, F1 might have to take a step back from one of the moves, which could cost them around $2,500,000.
In addition, the owner of the circuits, Formula 1, has spent millions of dollars on renovating the famous strip and streets in preparation for the race making the event probably the most hyped this season. With so much investment pouring in, F1 expects the event to be one of the biggest ones in the States even overtaking the Superbowl.
At the same time, the event is hotly debated as Formula One demanded licensing fees from venues within 3.8 miles of $1,500 a head. After facing backlash from local companies clubs and restaurants over the move the organization has decided to splash the licensing fees.
Formula 1 to lay off the controversial licensing fee
According to the New York Post, the racing league earlier intended to charge bars and eateries situated along the 3.8-mile circuit around $50,000 in licensing fees. Refusing to pay the fee would have resulted in blocking the view of the Grand Prix from the nearby venues.
Although, F1 charges similar fees to other street races like Monaco, owners of nearby venues in Las Vegas are afraid that customers might delay their next visit if they spend too much for the F1 event. Business owners, in protest, claimed that the ask was in line with what the Super Bowl charged when it was held last year in LA.
This demand came up to $1,500 per person, which is a whopping $3 million cost for a large facility that could hold 2,000 people. However, due to the backlash received, F1 has taken a step back and opted to slash the fees significantly.
Las Vegas GP track sees construction setback
Multiple reports suggest that the construction of the Las Vegas Grand Prix track is looking to be late. Construction of the paddock facilities has begun, although progress is being made slowly. They are located on a plot of land away from the main city, which is a wise decision because it offers great architectural flexibility. Despite this, the organizers are moving ahead with the plan to hold the race on time.
The most hyped Grand Prix of the year is scheduled to take place on November 19 and is expected to draw about 300,000 fans over the three-day period. Formula 1 has already invested heavily in the competition, and the unfinished track raises concerns about meeting the high standards set for the race.
