Formula 1 spends $280 million before the Grand Prix

Formula 1 spends $280 million before the Grand Prix

LAS VEGAS (KTNV) – Southern Nevada is running the clock as the countdown continues toward the Formula 1 Grand Prix in Las Vegas.

On Friday, officials from Liberty Media, which owns Formula 1, explained how things are progressing and the economics of what it takes to stage such an event.

During the third quarter, Liberty Media CFO Brian Wendling said the company “incurred approximately $280 million in capital expenditures related to pit construction structure and track preparation.”

According to Gregory Maffei, president, CEO and director of Liberty Media, the Las Vegas Grand Prix cost more than they thought because it “proves to be a bigger and more impactful spectacle than we expected.”

“We incurred significant expenses in the first year launch in Vegas, including additional provisions for safety, security and traffic planning, which were required by local regulators,” Maffei said. “We had a lot of one-offs. For example, just our first opening ceremony, designing and launching our multi-purpose app and creating a fan database. We remain very confident (with) increased efficiency to operate there as we grow increasingly profitable in the next two years and beyond.”

As for progress on the track, Maffei said they are excited and “ready to go.”

“The pit building is ready. We have obtained the certificate of occupancy to run the race. This will be the largest pit building on the Formula 1 calendar,” Maffei said. “The roof deck and wrap-around balcony will provide 360-degree views of the track. The temporary structure is in place. The bridges are complete. We’re ready to go.”

Related link: Know before you go: Airport delays and closures this Formula 1 race week

Formula 1 officials said adding Las Vegas to their racing calendar leads to new opportunities as the sport grows.

Stefano Domenicali, President and CEO of the Formula 1 Group, said: “While the race itself will be a fantastic spectacle, it has also generated exciting buzz that benefits the entire F1 ecosystem through increased commercial interest, fan awareness and wider brand value.” “With the agreements announced this quarter, the Las Vegas Grand Prix has now secured more than 20 partnerships to date for this major event.”

It also includes new fan experiences, such as the Wynn Grid Club, which Formula 1 officials said will debut at the Las Vegas Grand Prix.

“It is the first membership program of its kind designed for Formula 1 fans and will provide members with an unparalleled hospitality experience, including exclusive access to a location within the pit building,” Domenicali said. “As part of our partnership with the all-new Sphere, we will be running the Exosphere from Wednesday to Sunday. We can showcase a range of unique partners, F1 and Las Vegas Grand Prix content.”

Related link: NDOT outlines interstate closures leading up to the Formula 1 Grand Prix in Las Vegas

The only thing Formula 1 officials were keeping an eye on was a possible strike by the Culinary Union. However, they said they didn’t think there would be a problem.

“We have worked with the unions and I believe our race will not be directly affected,” Maffei said. “We’re obviously monitoring the impact this could have on the overall Las Vegas market.”

Given the long-term impacts of Formula 1 in Las Vegas, officials said they want to do everything they can to make the event a success and boost the local economy.

“The local economic benefit of this year’s Grand Prix is ​​expected to reach more than $1.2 billion, which includes direct spending from Formula 1 on the race, additional spending by visitors and the influence of suppliers and local businesses,” Domenicali said. . “In addition, the Las Vegas Grand Prix will generate an estimated $25 million that will be allocated to K-12 public schools and STEM program development that will be implemented in the Clark County School District in the coming years. Possibly Future Formula 1 engineer.” It will be born from this.”

As for the drivers and Formula 1 teams, they are ready to put their pedals on the new track. Although it hasn’t gone well for some so far.

Driver Max Verstappen said: “The last time I drove on the Las Vegas Circuit in a Formula 1 match, I think I hit more walls than I was driving straight.” “Let’s hope that won’t be the case when I start driving there.”

According to an interview a few days ago, Verstappen said the Las Vegas race is “more about the show than the race itself, if you look at the track layout.”

“Actually, I’m not interested in that,” Verstappen said. “I think I’ll just go there, do my job and then leave again.”

Although, he added, it may help the sport become more popular in North America.

“It depends on the levels. In terms of the racing scene, maybe not. But in terms of potential partners, maybe for everything around it.”

Other drivers such as Alex Albon said the track was “very easy to learn”.

“It’s a very simple circuit in terms of its design,” Albon said. “The track is very interesting. There are quite a few compact turns, which are not easy to lock from the front, which is not great for our car but that’s okay. The only thing that will be interesting is the roughness and bumps of the track, how good a job they did.” In this regard.”

The Grand Prix in Las Vegas is scheduled to be held from November 16 to November 18.

Related link: Clark County Formula 1 hosts free viewing parties for the Las Vegas Grand Prix

    (tags for translation) 13 Action News 

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