LAS VEGAS (KLAS) – Light stanchions as tall as pedestrian bridges now line Harmon just off of Las Vegas Boulevard; they’re part of the nearly half-billion dollar project Formula One is investing in Las Vegas, with finances still not set in stone.
How it’s being financed so far, in some ways, is unlike how any large event on the Strip has been before.
Las Vegas Convention & Visitors Authority (LVCVA) CEO and president Steve Hill predicted a return on investment that warranted some financial help during early negotiations.
“We will pay for Metro during the race. We’ll pay for Clark County Fire during the race. We do volunteer services,” Hill said during an interview with Politics Now Anchor John Langler. “For all major events in Southern Nevada, those public services are paid for by the event. The taxpayers are not paying for those things.”
As F1 infrastructure continues to dominate the Las Vegas Strip – from repaving remnants to grandstand construction to the 300,000-square-foot start and finish line –initial startup costs have gone up.
That’s according to Liberty Media, the Denver-based company that owns the Formula One Group and is currently funding the November race entirely.
During an early-August earnings call, Principal Financial Officer Brian Wendling told investors that capital expenditures related to the project grew to around $400 million.
For context, that is one-sixth times what they made in fiscal year 2022: $2.573 billion.
Wendling said during the call that the increased costs were to “ensure quality” for spectators.
Las Vegas Grand Prix CEO Renee Wilm also said they uncovered utility connections that needed to be addressed when beginning repaving.
F1 is trying to offset some of those costs, whether through licensing fees for businesses who have a view of the circuit or funding through Clark County.
The racing giant asked commissioners to provide $40 million of the $80 million project in early June after construction was already underway.
“How come some of this wasn’t sorted out before Formula One came to town?” Langler asked Hill.
“They could have. They didn’t need to. They’re having that conversation now,” Hill replied.
As negotiations continue surrounding whether Clark County will provide any taxpayer dollars, Commissioner Tick Segerblom told 8 News Now the full ask will likely not be fulfilled.
But, the international spotlight and ripple effects on employment and infrastructure, are what he says may warrant at least some help.
“Obviously, there’s a lot of questions that we didn’t even think about, you know, a year ago when we approved this,” Segerblom said after Tuesday’s commissioner meeting. “Doesn’t mean we don’t want to do it, but we just didn’t understand all of the ramifications. This is Las Vegas, this is what we do.”
F1 does not always return to the locations it raced at before. Hill added that LVCVA had a three-year financial deal with them to support races during those times, but expects to sign a 10-year deal before those three years are up.
“Folks may not be able to directly connect those dots, but the tax revenue that’s generated because of the event, the revenue that is brought here that turns into jobs and employment for people here, it’s a record weekend,” Hill added.
