Formula 1 spends eyewatering sum of money on land to build Las Vegas paddock

Las Vegas is set to host its third Formula 1 race next November on a Saturday night.

2023 Las Vegas Grand Prix

Formula 1 has splashed the cash on an area of Las Vegas that will allow them to construct a paddock area and pit complex ahead of next year’s Vegas Grand Prix.

Next year will see Vegas host its third race having hosted two around Caesars Palace in the early 1980s as Alan Jones and Michele Alboreto took victory in those respective years.

The circuit features a 2.8 kilometre back straight that runs along the infamous strip, and the bright lights of the entertainment capital of the world is set to draw in enormous crowds both at the racetrack and on worldwide television.

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The boom in viewership in the United States has been catalysed by the arrival of the Netflix docuseries Drive to Survive, and such is the rise in that demographic that Vegas will form one of three races across the Atlantic next season.

The global financial interest means, as Liberty Media CEO Greg Maffei reveals, that they have adopted a less orthodox approach to the marketing of the event.

“The momentum in the United States continues with this weekend’s inaugural Miami GP,” said Maffei.

“And of course, you can’t have not heard about the announcement of our Las Vegas GP for November 2023. As we’ve noted before, that’ll be a night race down the strip.

“And notably and differently than most places, F1 and Liberty Media are self-promoting the race in partnership with local stakeholders and Live Nation.

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“The build out for this track will require increased Cap-Ex and Op-X to develop. It’s too early to provide you with numbers, but we intend to update you later this year.”

The American elaborated on the space that was needed to make the ace feasible, and the money that needs to go into that.

“I would note that Liberty Media did enter an agreement to acquire 39 acres east of the strip to lock in circuit design and create capacity for the pit and paddock, among other hospitality and race support venues,” he explained.

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“I expect that transaction will close in the second quarter, and the purchase price was $240 million, which will be funded by cash on hand at the F1 group level.”

The Vegas Grand Prix is set to take place, with a unique distinction, on a Saturday night in November next year, making it one of the final races of the season.