Explained: F1 spends $500m on Vegas race – and plots $500m revenue

Explained: F1 spends $500m on Vegas race – and plots $500m revenue

 

 

 

Liberty Media, the owners of F1, acquired a 39-acre site for $240m and expect to spend at least the same sum on the 3.8-mile circuit and pit, according to the Financial Times.They hope that the first race in Vegas since 1982, on November 18, will generate $500m in revenue.The strategy to purchase and own the land is different to usual, where F1 works alongside a local promoter to share the costs and risks.Will Lando Norris be F1 world champion with McLaren?Video of Will Lando Norris be F1 world champion with McLaren?How F1 will make money in VegasBroadcast dealsSponsorships, including from major Vegas hotspots Caesars Entertainment, MGM Resorts International and Wynn Las VegasBeer brand Heineken is the title sponsorFees from promoters who sell ticketsA three-day ticket costs $500, a “high-end” five-day ticket costs $15,000 The initial $500m purchase of the land in Vegas means that F1 will expect profits to soar in future years.Liberty Media bought F1 for $8 billion six years ago.The sport’s US profile has grown massively since, in part due to Netflix series ‘Drive To Survive’ and the Miami Grand Prix.F1’s revenue was $1.8 billion in the first three quarters of 2022, a $300m increase from the first three quarters of 2019.The F1 Las Vegas Grand Prix is one of the most anticipated weekends in the 2023 F1 calendar.“What we did is basically change completely, opening up a new way of communicating,” F1 boss Stefano Domenicali told the Financial Times. Related NASCAR Suspends Bubba Wallace One Race for ing Kyle Larson 2022 Las Vegas South Point 400 Driver Ratings: Playoff Drivers“Our objective is to make sure that all the fans [who are] attracted by the lifestyle [and the] the protagonists behind the scenes  get into real racing.”Vettel selling his car for eye-watering price – with just 90 miles on the clock! 

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