- Setup costs for the race will reportedly exceeded US$500m
- General admission starts at US$500, rising to US$10k for hospitality
Formula One is hoping to generate US$500 million in revenue from the inaugural Las Vegas Grand Prix, according to the Financial Times.
The series has taken the unusual step of self-promoting the event, so the race has a significant amount of risk attached to the revenue generated.
Steve Sisolak, governor of Nevada, has previously revealed that he expects setup costs to pass US$500 million by the time the race is staged in November, so the series will likely lose money on this first event.
In May 2022, the series spent US$240 million on a 39-acre site to finalise the circuit design and create capacity for the pit and paddock facilities.
However, Formula One sees Las Vegas as an investment, and the new paddock building currently under construction in the city is seen as a permanent hub for the series.
Greg Maffei, chief executive of Liberty Media, explained: “This paddock building will be a sign of our long-term commitment to the Vegas community. It will serve as a year-round attraction to our fans and will be one of our most spectacular facilities.”
Despite signing an initial three-year contract, Las Vegas is expected to remain on the Formula One calendar for many years to come, so it is expected that this investment will pay dividends soon.
The race has already secured Heineken as its title sponsor, and T-Mobile has come on board as the official 5G provider.
Founding partners including Caesars Entertainment, MGM Resorts and Wynn Resorts have also been heavily involved in promoting the event, with Caesars offering an exclusive hospitality package for US$5 million, for example.