F1’s $1,300,000,000 Worth Sky-High Ambitions Become a Nightmare for Sin City as Million-Dollar Demands Shoved Down Bystanders’ Throat

As race weekends are ticking by, the highly anticipated penultimate round of the 2023 Formula 1 season is getting ever close, and the excitement for it is palpable. So where will F1 be from 16th to 18th November? In Las Vegas, Nevada. After 41 years, F1 is returning to Sin City, and the F1 community couldn’t be more excited. But as thrilled as F1 is to race in Las Vegas, venues around the newly made Las Vegas Street Circuit (part of which is on The Strip) don’t feel the same. And it’s all to do with F1: The Business, not F1: The Sport.

Las Vegas is one of the most posh cities in the US and the world. And the race there is expected to be no different. With F1 expecting around 100,000 spectators each day of the race weekend from Thursday to Saturday, it’ll rake in a projected $966 million just from their spending. Additionally, F1 is set to receive approximately $316 million from operation and support costs. This adds up to a whopping $1.3 billion (estimated) value for F1 just over the three days it’ll be in Las Vegas. And these support and licensing costs are becoming a nightmare for venues along the track.

According to Marca.com, “F1 is seeking $1,500 per head for licensing rights” from venues along the 3.8-mile circuit. Given that the circuit is a street track, people gathered in venues around it would be able to catch a glimpse of the cars on track. But F1 doesn’t want people who haven’t paid for the experience to capitalize on the race and experience the spectacle without paying their dues. “For establishments such as restaurants and clubs with a seating capacity of 1,500, the licensing tab would soar to a staggering $2.25 million.” [translated via Google]

F1 is allegedly threatening venue owners who are failing to comply with the terms. One casino owner said as per the New York Post, “[F1 sales representatives] are literally shaking people down, saying they will obstruct views unless they pay them. It seems insane that they are asking for money for a public event that is taking place in the streets.”

Read More: Las Vegas Forced Into Extravagant $9,000,000 Move as Super Bowl & F1 Increase the Bill Significantly

Responding to non-compliance, F1 sent a letter to the venues, stating, “Las Vegas Grand Prix will use reasonable efforts to maintain sightedness from licensee’s venue to the track/race.” These exorbitant costs and extreme measures will only succeed in alienating people from visiting the venue, and the Las Vegas GP will no longer be something fans would look forward to. But as of now, F1 has the upper hand on the Las Vegas market compared to America’s favorite sport.

Formula 1 has a significant advantage over the NFL

Despite the threats from F1 salespeople representing Renee Wilm—the CEO of the Las Vegas GP—F1 is still expected to reach its $1.3 billion profit goal. Considering this is its first time back to Las Vegas in 41 years, the 2023 edition might not disappoint F1’s business aspect. And its estimated profit margins are more than double that of the Super Bowl scheduled for 2024 in the city.

With Las Vegas set to host the LVIII Super Bowl in the Allegiant Stadium—the first Super Bowl in Las Vegas—organizers expect to rake in around $600 million in profits, which is less than half of what F1 is boasting. When F1 CEO Stefano Domenicali spoke about F1 compared to the Super Bowl, he said, “Super Bowl will be for one year [in Las Vegas], but we’re going to stay for a long time.” 

What do you think about the demands F1 has for venue owners along the Las Vegas Street Circuit?

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