The success of the Las Vegas Grand Prix could influence the development of F1

The Las Vegas Grand Prix is ​​expensive for its organisers, Liberty Media Corporation, which itself acts as promoter and has already invested around half a billion dollars in its project. Naturally, the initiators believe that it will gradually bear fruit, and this belief is shared by many in the Formula 1 paddock.

But this is a case of nowhere to retreat and every effort must be made to ensure that urban racing in ‘Sin City’, as Las Vegas is often called, becomes commercially successful. The championship teams also had to spend money: for example, Mercedes admitted that they had invested a lot of money to host 3,500 of their guests at the highest level, for which they rented the entire three-storey Vegas Club, located in the area of ​​​​the 4th turn of the track, for the entire weekend.

The economic model underlying the Las Vegas Grand Prix is ​​completely unusual for Formula 1, which normally only makes money from racing and spends little, but here Liberty had to invest its own money. The usual plan developed decades ago under Bernie Ecclestone looks different: an independent promoter pays tens of millions for the right to organize a race, and the championship organizers aren’t particularly concerned about how he will manage them. return.

Some people do better, like Bobby Epstein, because the US Grand Prix at COTA Texas Speedway in Austin has long since become a real motorsport holiday, while others do worse – just remember that the national phase of the championship has not been held in Germany for several years world – precisely because of problems with financing. And Italy manages to organize two Grand Prix, in Monza and Imola, because the promoters receive significant support from budgets at different levels, from municipal to state-wide.

But in Las Vegas, Formula 1 itself acts as promoter, and this Grand Prix is ​​planned to be held for at least ten years. This strategy is based on a simple statement: this race will attract enormous attention not only in the United States, where Formula 1’s popularity continues to grow, but also on a global scale.

The Grand Prix of Las Vegas will be attended by countless celebrities, high-profile guests and fans who can afford to pay huge sums of money for tickets and for accommodation in local hotels, whose owners obviously do not miss this opportunity to make money and the to increase prices.

According to The Race, the total economic impact of the race is expected to be $1.3 billion. At first glance this is impressive, but we must not forget that the costs of organizing and holding the Las Vegas Grand Prix are also very high, which is due, among other things, to the general situation in the world economy and to almost unprecedented safety precautions. measures and the need to block traffic in the city’s busiest areas.

According to official information, the construction of a modern and spacious complex of wells and track alone cost $280 million, but it is expected that in the future the well building will be used all year round for various events, making these costs more feasible.

Liberty reported that total spending had already reached $435 million by the end of September, but this is clearly not the final figure. It is of course extremely important for Formula 1 as a whole that this Grand Prix is ​​a success in every respect. At the same time, few people remember that more than 40 years ago, when there were already failed attempts to hold races in Las Vegas, which only led to losses, that project was also initially accompanied by hype, press interest, etc. Although the current hosts of the World Cup obviously have a completely different approach.

But the amount of the costs also varies. The construction of the track and the holding of the city race inevitably required and continues to require the closure of transportation routes, causing serious dissatisfaction among local residents. To somehow minimize this negative effect, all weekend sessions are held at a late time, for example the race starts on Saturday evening at 10pm.

This will be the first race since the 1985 South African Grand Prix that will not be held on Sunday. Furthermore, it is possible that this will be the first time in Formula 1 history that the race starts on one day and ends the next. The weekend schedule as a whole looks unusual, as in local time the track activity will take place on the evenings of Thursday, Friday and Saturday, while there will be no supporting races.

Experts, discussing various scenarios for further developments, are ready to admit that if the Las Vegas Grand Prix becomes really commercially successful and receives high marks from the press and fans, this could have a very serious impact on Formula’s development strategy 1 in the future. the future. The point is that Liberty Media, having assessed the economic component of its first such project, can expand this approach to other markets of paramount importance in the future. The text of The Race mainly mentions India and Africa, although for the time being these are only assumptions related to the most optimistic scenario. It is better not to talk at all about what could happen if the project is deemed unsuccessful, as this will largely put an end to Formula 1’s development plans.

But for now everyone has a completely positive attitude, and it is in the common interest that Liberty will succeed as planned and even better, so that even pessimistic skeptics will eventually admit that they were wrong.