LAS VEGAS (KTNV) — With just months until the Las Vegas Grand Prix, the planning for watch parties is well underway.
Businesses are partnering with Formula One for viewing parties. Now, other businesses may have to pay a fee to participate in the 3-day event.
November, the Las Vegas Strip will be turning into a racetrack. Hotels, restaurants, and bars will have a view of the track, and some are partnering with Formula One for official events.
Beer Park is part of one viewing event package called "Club Paris."
"Beer Park and F1 are partnering with Alexxa and Chateau to create Club Paris," said JP Panis, general manager of Beer Park.
The package is listed on the official F1 Las Vegas website, the cost is about $5,000 per person for the three days.
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Channel 13 has obtained from a source and an F1 fact sheet, explaining what restaurants or bars with views of the race will have to do to become an official venue for the Las Vegas circuit.
It states a licensing fee will cost the maximum occupancy of the location times $1,500. It gives an example that a location with 30 people would face a licensing fee of $45,000.
For that buy-in, businesses will be able to use Las Vegas circuit marketing material and get support from F1. The fact sheet also states the Las Vegas Grand Prix will use reasonable efforts to maintain "sightedness" from the licensee's venue to the track. Meaning, they will work to keep the view of the race intact for their official venues.
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KTNV spoke to John Boyd, an economist with the Boyd company about the licensing breakdown.
"I think Formula 1 is aware of the prestige that it has," Boyd said. "What is surprising is the very high fee based upon total occupancy. Not all businesses have the resources to be held hostage."
While the price may seem high to some, he says businesses on the official F1 venue list will benefit, but so will those who are not.
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"Formula 1 is the hottest sport in the world right now," Boyd said. "It attracts an elite type of sports tourists that attend. There are sorts of ancillary business functions."
It's unclear how many businesses will partner with F1 to become an official venue. For those choosing not to pay the fee, what's also uncertain is how clear their racetrack view will be.
