Over the last few years, no country has warmed up to F1 as much as America. The sport tried to enter the lucrative market in the past, but failed miserably, especially due to other forms of racing like IndyCar and NASCAR being more popular. Today, however, the country hosts three F1 Grand Prix in the calendar, with Las Vegas GP becoming the latest addition in 2023.
Races in America have been a huge commercial success of late, especially because of the popularity of Netflix’s Drive to Survive. F1 returned to the US in 2012 with the United States GP taking place in Austin becoming a mainstay in the calendar. However, looking at the increasing demand, the organizers decided to add Miami to the schedule in 2022.
F1’s inaugural outing in Miami was a huge success, with some reports claiming that it brought about $350 million of economic activity to the city. Looking at this, adding Las Vegas to the schedule was an easy decision and as things stand, the race in Nevada is set to bring in an even larger amount of revenue to F1.
Las Vegas GP profit set to break all records in F1
According to Greg Maffei, the chief executive of Liberty Media, the F1 race in Las Vegas is set to bring in a $500 million revenue boost for the group. As reported by Business F1, he added that almost all of this revenue will be recognized in the fourth quarter. This is because Las Vegas will be hosting the penultimate outing of the 2023 season.
This $500 million revenue forecast includes the amount of money they expect to earn from the grandstand, ticket sales, and sponsorship revenue. The organizers in Vegas have invested heavily in making the race as attractive as possible, but Maffei insists that the profits they will get in return will also be huge.
Did you know that F1 is spending $240 million on pits and paddock alone to make the Las Vegas GP a reality? 💰
Here’s the reason behind the purchase 👇
#F1 #Formula1 #LasVegas #Motorsport pic.twitter.com/FcGDumW7Wv— Motorsport.com (@Motorsport) May 17, 2022
“Las Vegas is projected to be the top five of all races in year one in terms of total profit,” says Maffei.
$240 million invested to acquire land in Las Vegas
According to sources, the heavy investment made by the organizers includes a $240 million purchasing of land in the city. This land will be used to build the paddock, and will also include the start and finish lines. To construct the facilities, another $20 to $30 million will be spent.
The amount of money that will be spent to make this race eventful and attractive will be huge. It will make the circuit in Las Vegas the most expensive street track of all time. However, the hype around this race points towards the F1 group making huge returns on their high investment.
