It’s a testament to the Las Vegas Grand Prix that it’s a surprise to see the race entering its third year.
In many ways, the event already feels far more established than that. This speaks to the considerable investment and buy-in from both teams and brands, which has allowed the race to evolve significantly since its debut in 2023.
Organisers will concede that year one was a challenge, but those early issues provided valuable lessons, leading to swift improvements. In just three years, the event has become something far beyond a typical Grand Prix, quickly establishing itself as one of Formula One’s most commercially significant races.
One of the biggest criticisms of the Las Vegas Grand Prix has been the emphasis on the ‘show’ over the sport, not to mention high ticket prices. However, organisers seem comfortable with having a more exclusive event. With a 24-race schedule offering plenty of variety, one Formula One race feels it can afford to lean more heavily towards the commercial side of the sport.
Ahead of the latest edition of the race this month, BlackBook Motorsport spoke exclusively with Emily Prazer, chief commercial officer of Formula One and president of the Las Vegas Grand Prix, and Steve Hill, president and chief executive of the Las Vegas Convention and Visitors Authority (LVCVA), to explore how the event has become an integral part of the championship calendar.
A logistical effort like no other
It’s easy to overlook now, but don’t forget that Formula One is staging a race on the streets of Las Vegas. This is a true logistical feat and a triumphant return to the city for a championship that previously raced in the parking lot of the Caesars Palace hotel between 1981 and 1982.
Clearly, it was much easier to take over a car park than to shut down sections of an entire city.
“I don’t think there’s enough understanding, generally speaking, about the complexity of what we do in Las Vegas,” says Prazer. “We open and close the track repeatedly throughout the course of the weekend, in comparison to Singapore that keeps the roads closed for seven days.”
This is set to run more smoothly in year three thanks to the lessons learned, but Hill admits that “we didn’t really have a plan” when the event was first announced in March 2022, underlining the achievement of holding the race only 20 months later.
Much of that was thanks to Terry Miller, general manager of the Las Vegas Grand Prix, who oversees all of the event’s operations and attempts to keep disruption to a minimum. But organisers aren’t resting on their laurels.
“I think there’s some opportunity to continue to improve the logistics, we really have to extend the race [setup] longer,” Hill says. “There needs to be the ability to invest more long-term capital in order to take the next step on the logistics.
“We think given the year-by-year temporary nature that we’ve had so far, we’ve probably come pretty close to doing as well as we can on the setup and tear down.”
Your latest construction update 🚧👀#LasVegasGP #F1 pic.twitter.com/FtfMXP4K5a
— F1 Las Vegas (@F1LasVegas) October 14, 2023
Converting locals and the wider US audience
One of the main challenges in establishing this race on the streets of Las Vegas has been its impact on local residents and businesses. While it would be foolish to think that the strong opposition from year one has completely subsided, Prazer is proud of the way Formula One has integrated into the local community.
“It’s been about communication,” she explains. “Honestly, we’re the first to admit the mistakes we made in the first year. People didn’t understand who we were, what we stood for, whether we were just here for three days, what our year-round proposition is. We fixed those things.
“We’re still not 100 per cent perfect, but I feel much better about how we’re integrating and communicating with the local media so they understand what we’re doing.
“Again, I’m never going to say we’re perfect, we’re far from it. But I will say that now that we’re here, we’re comfortable and we’re communicating, it feels a lot better.”
The race is also part of broader efforts to convert the wider US audience into Formula One fans. While this remains a work in progress, Prazer believes it has already made a noticeable impact.
“If you look at how committed Formula One are with Las Vegas, not just from a long-term strategy perspective but financially, it’s 100 per cent one of our biggest priorities as we continue to grow our sport in North America,” she says.
“It’s our home in North America. We own it, we operate it, we’re here 24/7, so there’s a slightly different mentality around it.”
Prazer also highlights the additions of American motoring institutions Cadillac and Ford to the grid next season as key indicators of the growing Formula One interest in the US market moving forward.
Establishing a year-round destination
Part of the process of integrating Formula One into the local area has been the creation of the Grand Prix Plaza.
“Following the first year, we spent some time understanding how we could utilise our facilities year-round as more of an attraction in itself,” Prazer says.
“The building is everything you want it to be, but we wanted to programme that so that we integrated it and used it to educate the fanbase in Las Vegas on what Formula One is and to make sure everyone understood we’re not just a three-day event, we’re here all year contributing to the community.”
The Grand Prix Plaza first opened to the public in May this year, featuring fan experiences such as karting, simulators, official merchandise and a 4D exhibition. Starting in January next year, it will reopen with a new 4D theatre, a new track layout for the karting experience, as well as event spaces for hosting birthdays and parties.
“It just gives us another touch point,” continues Prazer. “We do Grand Prix Sundays and do watch parties for other races. We have expert hosts talking about what’s going on in that race as an educational piece.
“One of the biggest takeaways is how much Las Vegans love karting. We’ve been very surprised as to how successful that has been throughout. It’s contributed to revenue but, honestly, as much as I am always driving revenue, it’s been about how we can use it to host and to give back to the community.”
Additionally, a new event this year, the Business Summit, is set to expand Formula One’s association with Las Vegas – something that Prazer is excited to see become “a staple in the Las Vegas Grand Prix calendar”.
An economic and commercial hotspot
Formula One’s economic impact in Las Vegas has been substantial, so it’s likely the event will remain a fixture on the calendar for years to come.
“We really like people who bring a billion dollars a year to Las Vegas,” jokes Hill.
In fact, Formula One has become the largest annual event in the city, with an economic impact of US$934 million in its second year. While this figure is lower than first year estimates of US$1.5 billion, it still represents a huge financial contribution.
“Formula One has become the biggest event in Las Vegas every year,” Hill confirms. “From an economic impact standpoint, it has changed the weekend that it’s here every year from one of the slowest of the year to one of the best.
“It’s changed November from a mediocre month for us to one of the best in the year. That’s not something we replicate with anything else on a regular basis.”
In the process, the race has also become a hotbed for brands seeking creative ways to activate partnerships with Formula One teams and the series itself.
“I know the creativity that my team here have and our ability to create assets outside of a traditional sponsorship model that Formula One was in, but we’re now fully integrated into the [wider] F1 business as LVGP, whereas previously we were a little bit separate,” explains Prazer.
“We’re in a really good spot with how we create new things and commercialise them differently and integrate them differently. The collaborations that Vegas helps us drive have then been rolled out to the rest of the season.”
One of those collaborations was the season-launch event at the O2 in London earlier this year. Prazer reveals this was organised by the team behind the Las Vegas race, highlighting that different sides of the Formula One organisation are working together effectively.
More than just a race weekend
Beyond the Grand Prix Plaza becoming a year-round destination, the race weekend is expanding to offer much more than just on-track action. While this is a trend across the Formula One calendar, Las Vegas is taking it a step further.
Notably, the hospitality offering is widely considered the best on the calendar largely thanks to Formula One owning and operating this race. This gives the series much more flexibility in how it delivers the service.
“[For] other Grand Prix, we would need to get different levels of permission and what have you … and it gives us the opportunity to do proof of concept in a place that tolerates proof of concept,” Prazer says.
“You know Vegas, anything goes, and so our sponsors and the teams and their partners love coming here because we get to get incredibly creative, and you’ll see that a lot this year.”
And while hospitality is a key focus in Las Vegas, organisers are also taking steps to ensure the regular race-going fan isn’t neglected.
“We have a significant grandstand and GA [general admission] demand that we didn’t see in the first year,” says Prazer. “We’ll always have catering for the super premium, but we’re the first race to introduce a US$50 Thursday ticket this year.
“We want everybody to have access to it and we want everyone to start learning about the sport.”
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