F1 tells Strip properties to pay up for Las Vegas Grand Prix views
Las Vegas Grand Prix officials confirmed they are charging businesses along the Strip a licensing fee to host watch events for the inaugural race, citing it was standard practice for Formula One.
Race officials are charging clubs and restaurants $1,500 per person to host a viewing event, with a note stating establishments that don’t pay could have their views of the race obstructed.
The licensing fee charge is common practice for F1, as the company generates the majority of its revenue via licensing out its commercial rights, a race spokesperson told the Las Vegas Review-Journal.
If businesses don’t opt in and pay the fee, F1 officials have reportedly warned that their view could be blocked by race-related setup, such as light stanchions or barricades, according to a New York Post report.
Clark County Commissioner Michael Naft told the Review-Journal that he reached out to “stakeholders” after reading the Post report.
While Naft hadn’t heard any firsthand accounts as of Tuesday morning about what the tabloid reported, he is seeking out further “comprehensive” conversations to learn who is being affected.
The commissioner said that it was important to recognize the race is taking place on a public right of way and that it should be an opportunity for everyone involved to benefit.
Having the licensing agreements in place allows F1 to protect its intellectual property during watch events, the F1 spokesperson said. The Las Vegas Grand Prix developed its own licensing agreement, to protect its brand, in similar fashion to what F1’s does, the spokesperson sai.
With a licensed event, Las Vegas Grand Prix can ensure all live viewing events are up to the standards of the ones already under the race’s control. By ensuring an event is held to a certain standard, customers attending the event are more likely to enjoy themselves, spend money and return for another race, the spokesperson said.
The fee would be multiplied by the maximum occupancy for a venue, with the fees reaching the multimillion-dollar level for large spaces, according to the Post.
The race will take place on a 3.8-mile track mainly centered on the Strip between Spring Mountain Road and Harmon Avenue. Most of the race is on public right of way, outside of the portions within the F1 paddock site and around the Sphere.
F1 has struck multiple deals with resorts to host sanctioned grandstands and viewing areas. Those include the Bellagio, The Mirage, Hilton Grand Vacations and Paris Las Vegas. F1 also plans to set up sanctioned grandstands along Koval Lane and Harmon, in addition to the ones in and around the paddock facility. Some of those spaces are sponsored by resorts such as Wynn and Virgin Hotels Las Vegas.
Tickets to the grandstand range in price from $2,000 to over $10,000, depending on location and level of included amenities.
F1’s parent company, Liberty Media, is investing $500 million into the race, including the cost of the land and the construction of the paddock facility being built on the northeast corner of Harmon and Koval.
Roadwork being carried out to ready the circuit for racing action comes with an $80 million price tag. As it stands now, F1 is footing that bill, but it has requested that Clark County provide $40 million in public funding to go toward that paving operation. The two sides are in negotiations and the County Commission will hold a public hearing once a dollar amount is determined, county spokeswoman Jennifer Cooper told the Review-Journal on Monday.
‘We want everyone to benefit from this’
Hotels are looking to cash in on the race weekend as well, with room rates for the days surrounding the event being several times above normal prices.
With 105,000 fans expected to attend each of the three days of racing, the economic impact of the race weekend is expected to surpass the $1 billion mark, according to estimates. Race officials believe the investment they’re making in the city and the projected economic impact show the race will benefit more than just F1 and Liberty Media, especially with the race slated to take place in Southern Nevada for multiple years.
“That’s the ultimate goal,” the spokesperson said. “Liberty is investing in Las Vegas to race in Las Vegas for a long time coming. We want everyone to benefit from this.”
Contact Mick Akers at makers@reviewjournal.com or 702-387-2920. Follow @mickakers on Twitter.
Review-Journal staff writers Jessica Hill and Ricardo Torres-Cortez contributed to this report.
