Las Vegas Grand Prix costs soar as ‘insane’ inaugural race draws closer

Sam Cooper 05 Aug 2023 9:00 PM

A rendering of the Formula 1 F1 Las Vegas Grand Prix.

Liberty Media have revealed that the Las Vegas GP has been under “inflationary cost pressures” but they expect it to go ahead on schedule.

Formula 1 is just three months away from returning to the city of Las Vegas in what is perhaps the most anticipated race in recent memory.

It is an incredible operation for F1, who are also the organisers of the race, to build a paddock area and ensure the famous Las Vegas Strip is ready to become a racetrack.

Las Vegas Grand Prix facing ‘inflationary cost pressures’

While there is plenty of money involved in Formula 1, the sport recording a profit of $2.5 billion in 2022, it is not immune to what is going on in the outside world.

Rising interest rates have affected many people’s lives and it seems it has also had an impact on the new jewel in F1’s crown.

“I am pleased to say preparations are running on schedule,” Liberty Media CEO Greg Maffei said in a call with Wall Street analysts, as per Motorsport.com.

“Despite inflationary cost pressures, we expect no change in revenue and profitability assumptions that we laid out previously. We are increasing CapEx estimates for the paddock building and track work.

“We remain confident in the return profile of this incredible project, which will support the incremental capital investment that we are making.”

Liberty chief financial officer Brian Wilding also confirmed that the paddock building is now “85% complete.”

“We expect CapEx related to the Vegas race including both the paddock building structure and track-related CapEx to be close to $400m, of which approximately $155m was incurred in the first half of the year,” he said.

“Our team has managed this project on a compressed timeline, and in an inflationary environment. Much of our cost increase is attributed to track-related expenses incurred to be responsive to the concerns of the local community, such as minimising disruption to businesses along the Strip.

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“We have also invested in security enhancements and expenses incurred to ensure the quality of the fan experience with infrastructure changes to improve sightlines.

“We are working closely with our local Vegas partners, and the speed and efficiency with which we have completed this project is a testament to these relationships.”

Christian Horner says ‘insane’ Las Vegas Grand Prix will have the whole world watching

在他18年的f1,红牛老板Christian Horner has experienced a lot of track unveilings but even he is surprised at the level of interest in Vegas.

Speaking to ESPN, Horner said he had “never known so much hype around a sporting event” and predicted that it would be an “insane” weekend.

“That race is going to be insane,” Horner said. “I’ve never known so much hype around a sporting event as a race on Saturday night down the Strip in Las Vegas.

“Everybody I meet says ‘oh, I want to be in Vegas.’ That weekend will be insane.

“I think the whole world’s going to be watching and hopefully we can put on a great show. Hopefully the track will deliver a great race and to be racing there under the lights is going to be unique.”