Sport

“Formula 1” put on Las Vegas – Sports – Kommersant

Formula One has concluded one of the largest deals in its history. The owners of the series from Liberty Media have agreed to hold one of the stages of the World Cup in Las Vegas starting in 2023. Unlike other races, the cost of holding the stage in the gaming capital of the United States will be borne by “Formula 1”. But she will also receive all the income. In the next ten years, if expectations are met, it could bring about $ 1 billion. With the advent of the Grand Prix in Las Vegas, the United States will be the only country that takes three stages in one season.

Formula One President Stefano Domenicali has announced that he has reached an agreement with the Las Vegas authorities to hold one of the stages of the World Championship in the city. The first race will take place in the second half of November 2023. And it will take place not on Sunday, like the other stages, but on Saturday. This step is obviously aimed at attracting as many viewers as possible. Many of them could refrain from traveling to Las Vegas for fear of missing work on Monday. “This is an incredible step for Formula One, demonstrating the huge and growing demand for our sport in the United States, where three races will soon take place,” Stefano Domenicali told the official website of the racing series. “There can be no better for Formula One. places than the entertainment capital of the world “.

The very fact of the race in Las Vegas would not be anything special, if not for one important detail. According to The Guardian and the Daily Mail, Formula One agreed to deviate from its own principles for the sake of the Las Vegas Grand Prix and did not look for a local race promoter. The standard scheme stipulates that the costs of organizing the stage are borne by the local company. She must pay “Formula 1” for a license to race. The amount of royalties has never been officially announced. But it is known that they are different for different stages. Races with history, such as Silverstone or Monza, are cheaper for organizers. Young stages, especially those backed by states such as the Abu Dhabi Grand Prix, the Saudi Arabian Grand Prix, the Qatar Grand Prix, etc., pay more.

On average, Liberty Media, which owns Formula One commercial rights, earns between $ 30 million and $ 35 million per stage, providing about a third of all revenue generated by the series. For a long time it was considered that the Monaco Grand Prix stood out. It was supposed that its organizers do not pay anything, as they provide a venue not so much for the race (from a sports point of view, the stage in Monaco can not be considered interesting), but for a big party, during which team sponsors can entertain their guests. But, as Prince Albert II of Monaco noted, his country still pays for the license. Just much less than others.

In Las Vegas, Formula 1 will not receive any license fee at all. She bears the costs. The expectation that they will pay off through the sale of tickets, advertising and related sales.

In fact, this is another glamorous stage, the same as in Monaco, but in a richer market. By the way, the route will be, as in Monaco, paved through the streets of the city and will capture its most famous locations, such as the Las Vegas Strip, MGM Grand and dancing fountains “Bellagio”.

According to Daily Mail sources familiar with the negotiation process, estimates show that Liberty Media will be able to receive $ 100 million annually from the Las Vegas stage. About the same amount, city officials estimate the potential income of local businesses from the stage. The estimated duration of the project is at least ten years. That is, if everything goes according to plan, the race can bring “Formula 1” about $ 1 billion.

We will also add that from 2023, the United States will in any case become the most important market for Formula One. After all, in the country, taking into account Las Vegas, there will be two more stages – in Miami and Austin. There have been only two cases in history when one country hosted three stages at once. The first, in 1982, was recorded again in the United States. Then the races took place in Long Beach, Detroit and Las Vegas. The race last took place in the vicinity of Caesars Palace Casino, made a depressing impression due to the lack of work on the project (part of the track ran through the parking lot at the casino, and in general it was more like a kart track) and was quickly excluded from the championship. The second case of holding three stages in one country was recorded recently, in 2020. Then Italy hosted races in Monza, Imola and Mugello. But it was a forced measure. In the midst of the coronavirus pandemic, the organizers of the championship faced numerous refusals from the countries to hold stages and in order to save the championship were forced to hold races wherever possible.

Alexander Petrov

.

About the author

lpnaf

Leave a Comment