Liberty Media CEO Greg Maffei reveals that a $240m deal sees F1 buy a plot of land in Las Vegas to be used as a pit and paddock facility for the Grand Prix.

The deal will allow F1 to build a permanent facility, similar to that in Miami, close to the proposed race track.

"The momentum in the United States continues with this weekend's inaugural Miami GP," said Maffei in a conference call with Wall Street analysts. "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," he continued. "And notably and differently than most places, F1 and Liberty Media are self-promoting the race in partnership with local stakeholders and Live Nation.

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

"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.

"I expect that transaction will close in the second quarter, and the purchase price was $240 million (£195m), which will be funded by cash on hand at the F1 group level."

The news comes as F1 announced the doubling of its revenue in the first quarter of 2022 to $360m compared to the same period in 2021.

The increase reflects the move on from the pandemic, the first quarter in 2021 only hosting one race compared to two this time around.

However, in addition to the 'extra' race the easing of restrictions has witnessed the return of fans to the grandstands.

As a result of this, together with an increase in F1 TV subscription revenue, increased fees as a result of new and renewed broadcasting agreements and sponsorship deals, primary revenue increased from $159m (£128m) in 2021 to $287 (£232m) this year.

"We've had a phenomenal start to the 2022 Formula 1 season," said Stefano Domenicali, "building on our momentum from a successful 2021.

"The new cars and regulations are delivering as we had hoped," he added, "enabling closer racing, more overtaking, battles through the field and thrilling results. Our events are attracting growing audiences both in person and across all our platforms."

The announcement comes as the sport prepares for one of the most anticipated events in its history, and as the Drive to Survive affect continues to raise the sport's profile, F1 anticipates that the financial dark days of the pandemic are well and truly behind it.

"Throughout 2021 and particularly in the first half of the season, attendance at races was limited due to the pandemic, and the Paddock Club did not operate in the first half," read the financial statement.

"F1 does not expect its results in 2022 to be impacted by such capacity limitations, though fan attendance continues to be assessed by relevant government authorities on a race-by-race basis."

Aside from the fact that F1 is the co-promoter of the Las Vegas race, the fact that it is shelling out $240m for land on which to build the facility suggests that the hype surrounding this weekend's Miami event will pale into insignificance compared to when the sport hits Sin City next year.

Check out our Friday gallery from Miami, here.

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READERS COMMENTS

1. Posted by ian_w, 07/05/2022 6:04

"In three years, the current owners of the property essentially double their investment:
https://www.reviewjournal.com/business/land-near-las-vegas-strip-once-planned-for-casino-has-new-owners-1600944/"

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2. Posted by f1khun, 07/05/2022 0:08

"If the racing is good - and it is, if you ask me - then I am fine with them making a killing, investing in the sport and tracks. It makes sense on every level. For this: Well done, Liberty!"

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Liberty in $240m Las Vegas land deal

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