Report: F1 reduces Las Vegas licensing fees amid backlash

Previous demands of ‘US$1.5k per head’ for unrestricted view of race will not be pursued.

Formula One has reneged on demands for Las Vegas venues to pay ‘US$1,500 per head’ for an unrestricted view of the upcoming Grand Prix, according to the New York Post.

Confirmed:

  • Venues must now pay around US$50,000 in licensing fees
  • Original demand would have seen a venue with 1,500 seats pay US$2.25 million

Context:

Formula One has charged similar fees for the likes of Monaco in the past, but Las Vegas has presented itself as an entirely different challenge. If the licensing fees are too high, the big spenders likely to attend the Las Vegas Grand Prix will be less likely to frequent the casinos, or they could even delay their next trip to Sin City. 

Comment:

A source close to a restaurant owner told the New York Post: “This venue fee is much smarter. It’s much more in line with what the Super Bowl will charge [when it is played in Las Vegas next year].”

Consequence:

It will be interesting to see how this U-turn affects Formula One financially. The original licensing fee demand would have seen a larger venue pay in the region of US$2 million to US$3 million. If the US$500 million investment into the Las Vegas Grand Prix was made with this initial licensing fee in mind, then Liberty Media and Formula One are facing a much larger deficit than originally anticipated.

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