'All eyes are now on Las Vegas': Formula 1 spends $280M ahead of Grand Prix

LAS VEGAS (KTNV) — Southern Nevada is on the clock as the countdown continues towards the Formula 1 Las Vegas Grand Prix.

On Friday, Liberty Media officials, who own Formula 1, outlined how things are progressing and the economics of what it takes to put on such an event.

Through the third quarter, Liberty Media CFO Brian Wendling said the company has "incurred approximately $280 million of CapEX related to the pit building structure and track preparation."

According to Gregory Maffei, the President, CEO & Director of Liberty Media, the Las Vegas Grand Prix is costing more than they thought it would since it is "proving to be a bigger spectacle and more impactful than we had anticipated."

"We did incur a significant expense in launching year one in Vegas and that included extra provisions for safety, security, and traffic planning, which was required by local regulators," Maffei said. "We had several non-recurring items. For example, our first year-only opening ceremony and the design and launch of our multipurpose app and creation of a fan database. We remain highly confident [with] increase efficiency to operate there on our growing profitability in years two and beyond."

As for progress around the track, Maffei said they're excited and "ready to go".

"The pit building is ready. We received the certificate of occupancy to operate for the race. This will be the largest pit building on the F1 calendar," Maffei said. "The rooftop deck and wrap-around balcony will provide 360-degree views of the track. The temporary structure is in place. The bridges are complete. We are ready to go."

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Formula 1 officials said adding Las Vegas to their race calendar is leading to new opportunities as the sport grows.

"While the race itself would be a spectacle, it has also generated exciting noise that benefits the entire F1 ecosystem through the increased commercial interest, fan awareness, and broader brand value," said Stefano Domenicali, President & CEO of the Formula 1 Group. "With the agreements announced this quarter, the Las Vegas Grand Prix has now secured over 20 partnerships to date for the marquee event."

That also includes new fan experiences, like the Wynn Grid Club, which Formula 1 officials said will make its debut at the Las Vegas Grand Prix.

"It's a first-of-its-kind membership program that is designed for the F1 enthusiasts 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 brand new Sphere, we will be taking over the Exosphere from Wednesday to Sunday. We can display a combination of unique partners, F1, and Las Vegas Grand Prix content."

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One thing Formula 1 officials have been keeping their eye on is a possible Culinary Union strike. However, they said they don't think it will be a problem.

"We have worked with the unions and I believe our race will not be impacted directly," Maffei said. "We're obviously watching what impact that may have on the overall Las Vegas market."

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

"The local economical benefit of the Grand Prix this year is expected to reach over $1.2 billion, which includes the direct spend from F1 to put on the race, the incremental. spend by visitor and the impact of local supplier and 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 develop a STEM program that will be implemented in the Clark County School District in the coming years. Perhaps a future F1 engineer will be born out of this."

As for the drivers and Formula 1 teams, they're ready to put their pedal to the metal on a new track. Although for some, it hasn't gone too well so far.

"The last time I tried it [driving on the Las Vegas track] on the F1 game, I think I hit more walls that I was going straight," driver Max Verstappen said. "Let's hope that's not the case when I start driving there."

According to an interview a few days ago, Verstappen said the Las Vegas race is "more for the show than the racing itself, if you look at the layout of the track."

"I'm actually not that into it. I'm more like, I'll go there and do my thing and be gone again," Verstappen said.

Although, he did add it could help the sport become more popular in North America.

"It depends on which levels. In terms of racing spectacle, maybe not. But in terms of potential partners, for the whole thing around it, maybe."

Other drivers like Alex Albon said the track is "quite easy to learn".

"It's quite a simple circuit in terms of its layout," Albon said. "The track is quite interesting. There's quite a few combined corners, which are not easy for front-locking, which is not great for our car but that's fine. The one thing which will be interesting is the roughness and the bumps of the track, how well of a job have they done on that."

The Las Vegas Grand Prix is scheduled to run from Nov. 16 through Nov. 18.

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