CEO Of Company That Owns Formula 1 Says Sorry To Las Vegas For Grand Prix Disrupting Life Along Strip Corridor
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By Alan Snel, LVSportsBiz.com Publisher-Writer
Not only did the top executive of Formula One’s parent company apologize to Las Vegas residents for the Las Vegas Grand Prix creating a traffic mess of headaches and long trips long the Strip corridor, he even said the F1 race on Nov. 18 will generate $1.7 million in revenue.
Greg Maffei, CEO of Liberty Media, which owns F1, told Fox News that 105,000 F1 fans are expected to visit Las Vegas and create $1.7 million in revenue for the Feb. 16-18 race event. That means each F1 visitor will spend an average of $16,190 in Las Vegas — a stunning number when you consider sports fans spend per capita about $1,500-$3,000 depending on the sports event in Las Vegas.
Maffei said he was sorry and offered this, “we appreciate that they have their forbearance and their willingness to tolerate us.”
Local Las Vegas sports booster and consultant Jeremy Aguero said the F1 event was going to have a $1.3 billion spending impact, so Maffei’s $1.7 billion number is $400,000 more than what Las Vegas was told about the grand prix spending impact.
In effect, Maffei out-Jeremy Agueroed Jeremy Aguero with the $1.7 billion number, which he gave to Fox News without explaining how that number was reached. With a number like that, if F1 fans actually came to Las Vegas and spent $1.7 billion, they will spend $200 million more than the $1.5 billion it will take the Oakland Athletics to build their baseball stadium on the Strip by 2028.
Clark County commissioners gave permission to Formula One to use 3.8 miles of public roads, right-of-ways and sidewalks for their race track and to close roads and lanes while paving is done. F1 also wants Clark County to pay $40 million in road paving costs, while the Las Vegas Convention and Visitors Authority (LVCVA) has committed $19.5 million to F1 under a three-year deal.
Liberty Media has built a $500 million 300,000-square-foot paddock or pit building, the F1 and Las Vegas Grand Prix nerve center with facilities ranging from upscale party areas to race teams’ garages at Koval Lane and Harmon Avenue.
The swanky edifice east of the Strip will be marketed to host corporate parties and social events during the rest of the year.
The race promoters convinced county commissioners that tourist spending at hotels and businesses during a time of the year when tourism is down in Las Vegas will justify the road closures, traffic and loss in income to businesses that saw revenues drop from the decrease in customers during road and race-related construction.
We shall see next week.
Reaction:
The race issued this statement: “Las Vegas Grand Prix, Inc. is grateful to have so many dedicated fans who are willing to travel around the world to attend our race, and we are committed to ensuring that they have an unforgettable experience.
“We offer a range of ticket categories with varied pricing to reach as many fans as possible, and these prices have not changed. Our ticket prices reflect the high demand for tickets and the world-class race programming that the Las Vegas Grand Prix has to offer, including multi-day tickets, ultra-luxury hospitality, 24/7 entertainment, and all-inclusive food offerings.
“In fact, the Las Vegas Grand Prix is tracking to earn more revenue than any Grand Prix in the history of Formula 1.”
