Formula 1 owner, Liberty Media, has reportedly invested over $500 million in its Las Vegas operations, with a permanent paddock building set to provide key race functions and host year-round events. Liberty CEO Greg Maffei spoke to investors last week and assured them that the company would see a "very good return on that money," which has been applied to infrastructure and promotions around the Las Vegas Grand Prix scheduled for November.
The 300,000-square-foot paddock facility is around 60% complete, according to the Las Vegas Review Journal. Maffei stated that while the race will have a high revenue stream and cost stream, it is more important to ensure a great experience for everyone involved in the first year.
Formula 1's decision to bring the race to Las Vegas defies its own conventions. The event will be the third U.S. race on the calendar along with Miami and Austin, at a time when it is a rarity for any country to host more than one race. Additionally, F1 is holding the race on a Saturday night, marking the first time it has done so in nearly 40 years.
Liberty Media sees Las Vegas as a great long-term bet for Formula 1, and is confident that the investment in the infrastructure and promotions surrounding the Las Vegas Grand Prix will pay off in the future.
Maffei also noted that the Las Vegas Grand Prix will be a unique and exciting experience for fans, drivers, and teams. The race will be held on a custom-built 3.8-mile circuit that includes parts of the iconic Las Vegas Strip, making it a one-of-a-kind event that combines the glamour of Las Vegas with the excitement of Formula 1.
The race is expected to draw a large and diverse audience, with fans from all over the world traveling to Las Vegas to watch the race and take in the city's attractions. The event is also expected to have a significant economic impact on the region, with local businesses benefiting from increased tourism and spending.