Greg Maffei, CEO of Liberty Media, is confident that Formula 1’s huge investment in organizing and hosting the Las Vegas Grand Prix will pay off in the long run.
In November, Formula 1 returns to this famous Nevada city after more than 40 years, and the race takes place on a street circuit, which is being built in the most popular tourist area, where most of the hotels and casinos are located.
Including the ring will pass along the famed Las Vegas Strip, and in February the Clark Local District City Council approved a plan for the partial overlap for the next 10 years.
The difference between this phase of the championship and other races is that Formula 1 acts as a promoter here and has invested more than half a billion dollars in the new project, including the construction of a stationary box complex and a paddock.
Recently, Maffei spoke at an investor meeting and talked about the company’s long-term strategy: “We expect a strong revenue stream, although the costs will also be high, but the most important thing is that in the first year, everyone involved in this project will get an excellent experience.
I think we’re going to be making a lot of money in Las Vegas in the future, and I’m already looking forward to it. I think we will get a good income this year. Still, the most important thing is the experience that the riders, fans, spectators and our shareholders will get. The goal is exactly this. I have no doubt that this project will have a very high payback time.”
As the Las Vegas round will be the third Formula 1 race in the US, there are inevitable fears that these grands prix will take away some of the audience from each other, ultimately negatively impacting ratings in all three cases and the income. However, Rene Wilm, CEO of the Las Vegas Grand Prix, believes such fears are exaggerated.
“We have regular conversations with race organizers in Miami and Austin about sharing resources,” she said. – We talk about how we can help each other, about which methods are suitable here, which are not. We believe that the tide raises all ships at once, and our intentions are just that…”
Source: F1 News
I am Christopher Clyde, an experienced journalist and content writer with a passion for sports. I have been writing about Formula 1 news for the past five years and am currently employed as an author at athletistic.com, one of the top sports websites in the US.
