Formula 1 hit the jackpot last night in Las Vegas by sealing what is likely to be the first £1billion deal in the sport’s history.
After months of negotiations, F1 boss Stefano Domenicali flew from London to Sin City’s iconic Strip to announce that next year’s Las Vegas Grand Prix will be added to the calendar.
In a break with recent tradition, the 50-lap spectacle is expected to take place on a Saturday at 10pm local time on one of the last two weekends in November – a scheduling that guarantees F1 crowd projection.
Formula 1 officials have confirmed that the Las Vegas Grand Prix will be added to next year’s calendar
The 3.8 mile course will consist of 50 laps and will zoom past iconic venues such as Caesars Palace
F1 boss Stefano Domenicali may have secured the sport’s first £1billion deal
While Domenicali desperately tries to land the fabled venue for the glamor he brings to the sport, the financial rewards from the terms of the contract are staggering. Rather than receiving a fee from the host city as usual, F1 will be promoting the event itself.
Sources believe this could net more than £100m per race. If the arrangement lasts a decade, as minimally hoped, the billion-pound mark should be exceeded and Las Vegas will become the most lucrative Grand Prix of all time.
Ticket sales, merchandise income and sponsorship deals go directly to the Formula 1 bank account.
Not that Vegas falls short. As an insider put it: “Local authorities believe any disruption the race is causing in the area is worth the effort. You will make money in the casinos, hotels and restaurants. It’s good for business all round. This is the conclusion that all parties have come to.’
Bringing to life a 3.8-mile, 14-turn track on the neon-lit Strip, zipping past iconic landmarks like Caesars Palace, the MGM Grand and the Belaggio at speeds of up to 212 miles per hour. The track design includes a high-speed corner sequence and a single chicane section.
Las Vegas will be the third Grand Prix in America. Miami makes its debut in May while Austin, Texas retains its spot in October.
That none of the trio will be dropped confirms Liberty Media’s ambition to break into the US market, as announced when it bought the sport in 2017. However, there is no thought of adding a fourth US GP at the moment.
F1 rivals Max Verstappen and Lewis Hamilton will now face off in Sin City next year
Vegas will join Miami and Austin as the third American Grand Prix on the F1 calendar
The Las Vegas dream dates back to the leadership of Chase Carey, the mustachioed American who succeeded Bernie Ecclestone as chief executive. But Domenicali, now in his second year at the helm, injected new momentum into transatlantic discussions, with talks accelerating from walking pace to sprinting over the past eight months.
As Sportsmail reported last October, Las Vegas officials visited Austin last year – a huge hit with 140,000 spectators – to see what it means to host F1. For his part, Domenicali insisted on VIP treatment while insisting that any Las Vegas GP must be on the Strip.
He didn’t want a repeat of the Las Vegas flop of the early ’80s, which took place in the parking lot of Caesars Palace. He also did not wish talks to be delayed like in Miami, where community opposition delayed progress for four painful years.
Las Vegas proved to be an easier nut to crack. Domenicali developed good relationships with the key players: Steve Hill, executive director of the Las Vegas Convention and Visitors Authority (LVCVA) and Steve Sisolak, the governor of Nevada. Both were there at last night’s announcement, along with Greg Maffei, President of Liberty Media, who described the collaboration as “the perfect marriage of speed and glamour.”
Vegas officials visited last year’s Grand Prix in Austin to see what it means to host a Formula 1 race
Demanding VIP treatment, Domenicali insisted their Grand Prix be held along the Strip
An official statement read: “Formula 1 and Liberty Media will work together to promote the race in partnership with Live Nation Entertainment and the LVCVA, as well as founding partners Caesars Entertainment, MGM Resorts International and Wynn Las Vegas and presenting partners MSG Sphere. Resorts World Las Vegas and The Venetian Resort.”
Domenicali will have fewer problems selling this race to the drivers than the Saudi Arabian GP, which several star protagonists wanted to sit out after a rocket attack on an oil depot 12 miles away.
“Las Vegas is known around the world for its excitement, hospitality, thrills and famous Strip,” said Domenicali. “We can’t wait to be here next year.”