The glittering lights of the Las Vegas Strip are set to dazzle as Formula 1 takes center stage in the city that never sleeps. The usually exclusive European-based racing series, Formula 1, has embraced an American adventure, with the epicenter being the bustling streets of Las Vegas. The engines roared to life as qualification kicked off on Friday night at the stroke of midnight local time (PST), and the main event is scheduled to unfold on Saturday night at 10 p.m., providing a spectacle for viewers worldwide.
In 2017, Colorado-based Liberty Media made a seismic move by acquiring Formula 1 for a staggering $4.4 billion, with an eye on expanding its footprint in the United States. The gamble seems to be paying off, as Formula 1 shares, trading under the tracking stock ticker FWONK, boast a market capitalization exceeding $14 billion, despite a 16% year-to-date dip.
Liberty Media CEO Greg Maffei, expressing optimism, affirmed that the significant investment in Vegas, totaling $600 million for a 10-year race deal, is poised to yield substantial returns. Maffei anticipates revenues from the weekend to reach approximately $500 million, marking an impressive economic boost. Notable sponsors, including T-Mobile and AmEx, have been drawn to the spectacle of Vegas, creating new avenues for growth.
“Not only do we expect to make money in Vegas, but it’s an enormous growth vehicle for the business overall,” Maffei declared in an exclusive interview with Yahoo Finance. “We have the opportunity on Saturday night to show a whole lot of fans around the world a new element with the night race down the strip; it’s going to be iconic.”
Beyond the financial gains, Maffei envisions Las Vegas as the crown jewel for U.S. racing, offering a unique experience that transcends the racetrack. Despite a recent 9% drop in ratings in 2023 and Red Bull driver Max Verstappen’s dominance, Maffei sees room for growth, citing increased engagement across various platforms, particularly in the United States.
Acknowledging growing pains in setting up the Vegas track and paddock area, Maffei extended apologies to the city and residents for disturbances, assuring that the racing event would be a positive force.
“I think Vegas will like this a lot. It will be the largest sporting event ever done in Vegas. Bigger than the Super Bowl, bigger than anything they have ever had, and we’re injecting something like $1.2 billion into the local economy,” Maffei asserted.
Despite Formula 1’s grand ambitions, the NFL looms large on the horizon, especially with the Big Game scheduled for Las Vegas in February. Maffei recognizes the NFL’s accessibility but aims to make Formula 1 a sport that resonates with a broad audience, mirroring the diverse fan base that has evolved over the past four years.
Lewis Hamilton, the seven-time world champion and a trailblazer in his own right, echoes the sentiment, praising Formula 1’s growth and diverse fan base. As the first racer of African and Grenadian descent to win the title, Hamilton sees the Vegas race as a must-watch event, even if it means starting at midnight on the East Coast.
“I hear there’s a lot of people complaining about the direction Stefano [Domenicali, F1 chief executive] and Liberty Media are taking, but they’re doing an amazing job,” Hamilton affirmed, expressing his excitement about the unique energy and buzz of Las Vegas.
As the checkered flag falls on the inaugural Formula 1 race in Las Vegas, the city stands not only as a testament to high-octane excitement but also as the new frontier where Formula 1 has seamlessly merged with the vibrant energy of the Strip, leaving an indelible mark on the racing world.
Source: Yahoo Finance
