F1 has acquired 39-acre land worth $240m for Las Vegas GP to build a space around the circuit for paddock and hospitality.
F1 has acquired a $240m site around the Las Vegas circuit to create a space for paddock and other infrastructure such as hospitality.
The city authority had previously agreed to let the F1 use the streets. But most of the land adjoining the track belongs to casinos and other businesses.
The Las Vegas GP has been added to the 2023 race calendar and there has been a lot of excitement surrounding the race. However, the lack of space to place the paddock and other infrastructures was one barrier that probably had everyone scratching their heads.
Until the report of this $240m deal, the teams were told that the paddock may be over a mile from the actual pit area. But now the F1 has found a solution.
Liberty Media CEO Greg Maffei revealed that the sport has now addressed the challenge by buying its own site in the city. The deal is expected to be formally finalised in the coming weeks.
This would potentially allow F1 to build a permanent pit structure, which is what the Miami organisers have already done.
Maffei also informed that as co-promoter of the Las Vegas race Liberty and F1 will be making a notable investment in the project. The sport will put in the extra capital and operating expenditure required to get the event up and running.
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Creating a memorable night race at Las Vegas GP
The momentum in the F1 community is already high with the upcoming first-ever Miami GP this weekend. And a similar or more excitement is expected for the time when F1 hits the US again with the compelling night race in Las Vegas.
The event is scheduled to be held in November 2023 and unlike most places, F1 and Liberty Media are self-promoting the race in partnership with local stakeholders and Live Nation.
Maffei said, “The build out for this track will require increased Cap-Ex and Op-X to develop. It’s too early to provide you with numbers, but we intend to update you later this year.
“Liberty Media did enter an agreement to acquire 39 acres east of the strip to lock in circuit design. It will also help create capacity for the pit and paddock, among other hospitality and race support venues.
“I expect that transaction will close in the second quarter. The purchase price was $240 million, which will be funded by cash on hand at the F1 group level.”
Furthermore, with Max Verstappen signing a long-term extension with Red Bull it seems as though the deal for Las Vegas is equal to the Dutchman’s salary for six seasons.
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