Recently, Liberty Media Group (Liberty Media) acquired 39 acres of land near the Vegas Strip for a sum of $240 million.
The land will be utilized by the owners of Formula 1 for the Las Vegas Grand Prix races, commencing in November 2023.
On a recent earnings call, Liberty Media’s CEO, Greg Maffei, stated that the northeast corner of Koval and Harmon will serve as the location for the pit, paddock, and some additional hospitality.
Although Liberty Media has bought the land, the sale is not yet official.
Said Maffei:
“I anticipate that the transaction will be finalized in the second quarter. The purchase price was $240 million, and the funds for this will come from the Formula One Group’s available cash.”
Las Vegas Grand Prix Course Coming Together
The track for the Las Vegas Grand Prix will stretch 3.8 miles from beginning to end. This 50-lap race is scheduled to occur during the evening and will showcase three straightaways. The highlight of the race will be the Vegas Strip, where cars could potentially exceed speeds of 200 MPH.
When vehicles speed past the Cosmopolitan and Planet Hollywood, they are set to make a left turn onto Harmon Avenue. On any ordinary day, this wouldn’t constitute a particularly exciting drive. However, the acquisition of this land by Liberty Media is expected to alter that perception.
This acquisition transforms what could have been a dull segment of the Las Vegas Grand Prix course. The Harmon land will now encompass a fan hospitality area for viewing the action.
The course could also be shaped by Liberty Media, as they own the land.
F1 has the capability to introduce some variations to the Las Vegas Grand Prix course. Here is a Google Earth perspective of the probable layout of the course as it traverses the territory presently owned by Liberty Media.
This course segment is expected to witness a lot of race action as cars utilize the pit boxes. It’s also the location where Martin Brundle conducts his well-liked grid walk for fans before the race, which is broadcasted to those viewing from home.
Some key features of the Las Vegas Grand Prix course include 14 corners, a chicane section, and two DRS zones.
Several Nevada sports betting apps have already posted odds for the 2023 race. However, considering the race is quite a ways off, it could be sensible to wait before placing any bets.
Preparing The Las Vegas Grand Prix Course
The upcoming Las Vegas Grand Prix will mark the first F1 race on a road course in the city. Previous F1 races in the 1980s were conducted in a parking area behind Caesars Palace, a location that doesn’t quite match the glamour F1 seeks today.
The process of building an F1 course from the ground up is a massive undertaking. The construction of the road course for the Las Vegas Grand Prix will require a considerable amount of time.
While both new US F1 tracks (Miami and Las Vegas) will primarily be temporary, the construction for the Las Vegas F1 race might not require nine months as was the case with the brand new Miami International Autodrome in Florida.
Constructing the Las Vegas Grand Prix course this year might require slightly more time than the six or seven weeks typically needed to build the Monte Carlo road course.
The Miami Grand Prix course was built using 2,870 Geobrugg blocks for barriers and 24,000 tons of asphalt for the ground. Las Vegas could benefit from additional Geobrugg blocks and asphalt, given that the course location is on older, deteriorating roadways.
The construction of a road course such as Monte Carlo is quite intriguing. Have a look.
Liberty Media’s land purchase will enable the construction of permanent structures for future use. The creation of the Las Vegas Grand Prix course is likely to take more time in 2023 compared to subsequent Las Vegas F1 races.
Vegas Strip Roadwork
The construction of the Las Vegas Grand Prix course is likely to adopt the model of Monte Carlo’s off-site modular units for many of its required structures. This would enable Las Vegas to function as a city during both the course’s assembly and disassembly periods.
The layout of the Las Vegas Grand Prix course is primarily away from the Vegas Strip, a critical factor since most tourists lodge in the Vegas Strip during their visit to Las Vegas.
The 2021 Las Vegas Visitors Profile states that 75% of travelers lodged at a hotel on the Vegas Strip. This statistic has remained over 70% for the last four surveys.
When Clark County decides to resurface the Vegas Strip, it will probably be the biggest headache. Last year, roadwork on and around the Vegas Strip turned out to be a nightmare for those attempting to navigate the area.
The construction project initiated last year involves more than just road resurfacing. Clark County must fast-track this work to ensure the roads are in top condition for the race scheduled next November.
The construction of the Las Vegas Grand Prix course will require time and the costs will be shouldered by the state and Liberty Media. Maffei perceives no issue concerning the funds required to establish and advertise the Las Vegas F1 race.
“I don’t believe we should discuss the Vegas expenditure any further, it will be significant but within our ability to handle. I also don’t think we will require external partners.”
The Las Vegas Convention & Visitors Authority (LVCVA) has recently given the green light for a $19.5 million sponsorship deal for the first three races. The LVCVA will be assisting Liberty Media with “operational project management” for these races.
The inclusion of Las Vegas in the race branding is one aspect. However, the sponsorship will provide the city with the opportunity to promote itself to F1 enthusiasts globally.
We should remain optimistic but prepare for potential setbacks during the construction of the Las Vegas Grand Prix course.
Las Vegas Grand Prix Impact On Tourism
Front Office Sports reported that the Miami Grand Prix attracted 242,955 attendees over the three-day event, with 85,280 people present for the race.
Over the three-day NFL Draft recently held in Las Vegas, there was an attendance of 300,000 people. This equates to an average daily turnout of 100,000 people.
Over the long racing weekend, Clark County is anticipating “only” 170,000 visitors, which averages to approximately 56,000 individuals daily.
The attendance for the Las Vegas Grand Prix might not match that of the NFL Draft or New Year’s Eve, but it could lead to record-breaking prices for hotels, clubs, and restaurants. F1 fans typically have more wealth than NFL fans. Therefore, for Las Vegas businesses, smaller numbers might actually be more beneficial.
Last weekend, the starting price for Miami Grand Prix tickets was $640. Meanwhile, the price for hotel and entertainment packages in Miami reached up to six figures.
This is not the audience intending to guzzle frozen beverages from a plastic cup shaped like the Eiffel Tower. A substantial number of F1 enthusiasts are seeking upscale experiences such as the Carbone experience in Miami, priced at $3,000 per person.
Some of the biggest names in the Las Vegas casino industry, such as Caesars, MGM Resorts, The Venetian and Wynn Las Vegas, are sponsors of the Las Vegas Grand Prix.
Somewhere on the racecourse, at least one luxury property of each sponsor will be visible.
- MGM Resorts’ Bellagio
- Palace of Caesar
- Cosmopolitan (To be renamed as MGM Resorts)
- Las Vegas Wynn
- The Palazzo and The Venetian
The county anticipates that 400,000 hotel room nights will be booked by those visiting Las Vegas for the race.
During Liberty Media’s earnings call, Stefano Domenicali, CEO of Formula One Group, stated that the 24 hours following the official announcement of wins in Las Vegas and the anchor resort saw more requests for hotel room reservations than any other single day in their history.
This comment pertained to the global enthusiasm amongst F1 fans wishing to lodge at Wynn Las Vegas. The deluxe establishment located on the Vegas Strip has recently earned more Forbes Travel Guide Five-Star Awards than any other standalone hotel company globally. This is undoubtedly appealing to affluent racing enthusiasts.
Prepare yourself for unprecedented high prices for virtually everything in Las Vegas when F1 arrives in the city.
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