F1 goes “all in” – half a billion profit?
Formula 1 wants the jackpot with the Las Vegas GP
In November 2023, Formula 1 will return to Las Vegas after more than 40 years. Using a new strategy, F1 owner Liberty Media wants to achieve gigantic sales from this race.
Formula 1 returns to Las Vegas after 40 years.
Formula 1 wants big money! With three races in the USA, the media company Liberty Media, which has owned the Formula One Group since 2017, is primarily planning to conquer the American market. Last season, drivers already raced along tracks in Austin and Miami. In November, there will be a Formula 1 race in Las Vegas for the first time since 1982 (back then in the parking lot of Caesars Palace).
Formula 1 is aiming for gigantic sales: the GP in Las Vegas should bring in around 500 million euros with the help of a new strategy. Normally, Formula 1 always plans the races together with local organizers and then splits the profit at the end. Formula 1 now wants to organize the race weekend in Las Vegas itself.
Financing through high ticket prices
As the “Financial Times” reports, Liberty Media has already acquired around 16 hectares of land for around 240 million dollars, on which the Las Vegas Grand Prix is to take place in the future. The F1 owner also wants to put a similar amount into the track and pit lane. These costs, which Formula 1 bears alone, are to be financed primarily through the horrendous ticket prices. These are between 500 and 15,000 dollars!
There are also partnerships with local companies and money from title sponsor Heineken. According to documents from Liberty Media, sales should total around 500 million euros in the end – the US company will then pocket the profit alone through the new strategy and its associated solo effort.
In the USA, Formula 1 triggered a first, smaller wave of enthusiasm with the Netflix series “Drive to Survive” in 2019. According to “ESPN”, a new viewer record was finally reached in 2022, with an average of 1.2 million US spectators watching the Formula 1 races. With the GP Las Vegas, the popularity of Formula 1 in the USA should now be further increased. (mbi)