Billion-dollar-business: Formula 1 in Las Vegas Strip till 2032

In 2023 the Formula 1 will be holding the Grand Prix in Las Vegas for the first time. When the events were announced in 2022, one could already notice that the city and the racing team are looking at a long-time cooperation. Actually, the contract runs till 2025. The authorities in Las Vegas are aspiring to have a minimum of ten years‘ partnership and closing the strip for the races and the billion-dollar-business every year.

The Formula 1 is more popular than ever in the USA. Therefore, it is no wonder that besides the fact that the Grand Prix was held in Miami for the first time in 2022, as from 2023 Las Vegas will have its own Grand Prix. The spectacular city race which takes place directly above the famous strip aims to attract several thousands of visitors and gain a huge profit. The large popularity and the ticket prices are already enough to make a huge profit.

City authorities are aspiring for a long-term partnership

Formula 1 have signed a contract of three years in Las Vegas. However, the Clark County Commission, which is responsible for the city is already aspiring to hold the yearly event for at least the next decade. The city is hereby targeting the economic benefits of such an event. We are talking here about the amount of more than a billion dollar.

Before an important vote to recognise the race in the city, James Gibson, the Commissioner of Clark County, informed the press, that he is reckoning with a commitment which spans over more than the three-year-contract. The great benefit of the event for the city would be evident even to the successors of the city authorities. Some of the most important roads in the race are found in the city area of Clark County, among them the Las Vegas Boulevard, the so-called Strip.

Decision to close the Strip has long been anticipated

No one is surprised that the application for the event was approved unanimously. The decision is however somewhat curious because it has long been anticipated before there was even a contract with Formula 1. A permit to close the streets involved in the race, which also include the strip, has been granted till 2032. Experts and critics are sure that that this decision was fuelled by the promising financial prospects.

The project will create many jobs and of course this fact is of economic importance for the city. Terry Miller, the project manager of the Grand Prix speaks of the huge opportunities for the whole community. It will create jobs and existing business will be supported by the many new customers. The event itself will also require a lot of manpower.

A lot of money will be involved

According to the current plans the Formula 1 will always be held in Las Vegas in November in the week before Thanksgiving – from Wednesday to Sunday. Those responsible promise to bring a lot of guests during this time. The summer heat will be over, and many will be on holiday for Thanksgiving.

The preparations are in full blast so that everything is ready for the first appearance of the F1 race cars. This will involve a lot of money and will bring in a lot of cash. The grounds for the pits and the paddock will on their own cost 240 million dollars. The price of building them is not yet known.

However, the costs will be covered. Just like in Miami, besides the local interest groups, the Formula 1 itself is promoting the event in Las Vegas. Thus, further additional marketing-power is available.

The latter is hardly necessary for the sale of tickets for 2023. The tickets are nearly all sold out. The income from the ticket prices is sky-high. A ticket on the main stand for the weekend costs 2,500 Dollars. Tickets in the other categories are also not cheap.

Conclusion

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