F1 race expected to be bonanza for Las Vegas economy
Most Formula One circuits are made of asphalt.
But those who worked to bring the globe-trotting auto racing series back to Las Vegas also believe they are lined with gold.
“I’m laser-focused on the Las Vegas economy, and we know the impact this Formula One race will have on our economy is going to be considerable,” Nevada Gov. Steve Sisolak said during Wednesday night’s announcement at The Cosmopolitan of Las Vegas confirming an F1 night race will be run on a temporary 3.8-mile street circuit encompassing the Strip in November 2023.
That belief also was what spurred private investors to spend more than $400 million to build the Circuit of the Americas near Austin, Texas, in 2010.
Until a race on a temporary circuit in Miami was added to this year’s schedule, the 3.4-mile, 20-turn layout carved out of 375 acres of undeveloped land about 20 miles southeast of the Texas capital had served as the only F1 grand prix in the U.S. since 2012.
According to the COTA website, its F1 race in October and companion events have generated a cumulative economic impact topping $5 billion since ground was broken on the facility in 2010. A record crowd estimated at 400,000 attended the 2021 three-day F1 weekend in Texas.
The series’ TV ratings are just as impressive. More than 520 million in nearly 200 countries tune in to F1 over the course of a season, with several races topping 100 million viewers — comparable to this year’s Super Bowl.
Buoyed by the success of an F1-based Netflix reality show called “Drive to Survive,” the series is gaining in popularity among domestic race fans, especially those who identify with a younger demographic.
“I know what I’m about to say sounds fake, but a handful of very notable NFL execs/GMs/coaches asked me this week to explain F1 at the owners’ meeting because they want to get into it, their kids are into it, or they just wanna know how it got so big,” Kevin Clark, a former Wall Street Journal writer who covers the NFL for The Ringer website, wrote Wednesday on Twitter.
Heck of a deal
Usually to make money on an F1 race, one must first spend money.
A lot of money.
The fee to host an F1 race can run as high as $40 million. (COTA in Texas pays $25 million annually for its race.) Building a street circuit that measures up to F1’s lofty standards — then quickly tearing it down — is an even bigger expense.
But with F1 and Liberty Media, its U.S.-based ownership group, assuming the role of promoter for the Las Vegas race in partnership with Live Nation Entertainment and the Las Vegas Convention and Visitors Authority, the city will not be responsible for the majority of those costs.
As one local tourism official told the Review-Journal, it’s a fantastic deal for the city given the prohibitive costs usually associated with securing an F1 race.
Regardless of who is footing the bill, converting city streets on an iconic thoroughfare into a world-class racing facility will be a major undertaking. But as Lucas Bell of Road and Track magazine wrote Wednesday about the prospect of a Saturday night spectacle with the bright lights of the Strip serving as a backdrop: “The crowd experience at a Las Vegas race should be worth the price of admission. You know it’s gonna be wild.”
Contact Ron Kantowski at rkantowski@reviewjournal.com or 702-383-0352. Follow @ronkantowski on Twitter.
Racing leaders support F1
It often has been said that auto racing is an extended family, which was apparent from the positive reaction to Wednesday's announcement that Formula One will be returning to Las Vegas from two of the sport's leading local advocates.
"This is an exciting announcement for Las Vegas, for Formula 1 and for race fans worldwide," Las Vegas Motor Speedway president Chris Powell said about the city's long association with auto racing that grew exponentially when LVMS began hosting NASCAR and other events in 1998. "Over the past two-plus decades, our city has emerged as one of the foremost destinations for all of the excitement and passion that auto racing generates."
Powell said the return of F1 after a 40-year hiatus since the demise of the Caesars Palace Grand Prix will only add to Las Vegas' high-speed legacy.
"We look forward to welcoming F1's arrival and lending any assistance necessary to make this the world's most successful F1 event," he said.
Longtime IndyCar Series team owner Sam Schmidt was just as enthusiastic after attending last year's F1 race at Circuit of the Americas near Austin, Texas.
"They blew it up last year with 370,000 people (in attendance). It was crazy," said Schmidt, who sold a controlling stake of his IndyCar operation to the McLaren F1 team in August. "It didn't seem as congested as the grandstands at (the Indianapolis 500), but it still had a great energy, a great vibe. It blew away the promoters, and that's a win-win for everybody."
Ron Kantowski Las Vegas Review-Journal
