Why Las Vegas is the Most Important Race in F1

Joe Pompliano breaks down the business behind the Formula 1 Las Vegas Grand Prix, which takes place this weekend. Joe looks back at the economics of last year's inaugural race, analyzes why the Las Vegas Grand Prix is one of the only events owned & operated by F1's parent company Liberty Media, why the Las Vegas Grand Prix has become F1's most important race, and more. Enjoy!

Joe Pompliano creates weekly videos on interesting topics at the intersection of sports and business. If you enjoyed this video, make sure to subscribe to his channel.

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[SportsIncorporated]

This was one of the best business videos I've ever viewed. You packed so much relevant information into only 11 minutes. I can't thank you enough.

[julupani]

Another important factor that you missed is the fact that F1 has also run into a limit of how many races per year it can have. There are many tracks which would want to host F1 today, but the calendar is packed. Unlike other sports series the global nature of F1 where thousands of people and millions of dollars of equipment have to criss-cross the entire worl, and the fact that you also have to leave time for the teams to actually develop their cars, means Liberty is constrained in terms of how many races it can have.

Hence a need to generate more revenue from the existing races.

[patriotpride]

Love the content, Joe. Always top notch.

[armenvegas]

Las vegas messed up by not charging F1 fees for using its likeness instead of the other way around

[kengreenberg]

ESPN has Netflix to thank for the supercharged attention

[JimiJones-jq]

Hotels were cheap this year. I paid $40 Thursday, and $99 on Friday to be on the strip. The resort fees were more expensive!

[tipsterbl]

F1 is committed to success in Las Vegas and I expect the race will continue to improve for fans and locals, but F1 should consider using some of that money to help local businesses negatively affected by the race. It would create goodwill and make the headaches for locals easier to accept.

[isaiahpavia-cruz]

Hotels have said they don’t project to hit the same marks from last year

[djdsf]

Euro fans got the balls to complain about 3 US races, but don't complain about Italy having 2 GPs...

That would be like the US having the Miami GP, and the Orlando GP, because Italy is around the size of Florida alone.

[cathrynm]

I live in Las Vegas, and honestly, I barely notice. I don't drive through the strip normally. I15 is a mess, but that's the construction at the new Tropicana onramp, and unrelated to the race.

[brienmiller]

You cherry-pick your stats, most notably, not paying any attention to (1) lost revenues and (2) the concentration of profits in a handful of businesses. Tickets did not sell out this year despite removing grandstands. F1 may tell you it was a sell out, but they were essentially giving away seats until the Thursday morning. For example, Mastercard was selling seats in the start/finish grandstand for $130 each. That's for all three days. Go ahead, make all the core fans unhappy, by being greedy and see where that gets you. Ask NASCAR..I'm a die-hard fan and live within driving distance, but won't go because of the hassle of getting around and the race being held at night at the end of November. F1 loves the US so much it's holding a race at a time of night that few in the US will watch live.

[andrewbarrett]

Absolute rubbish race and typical American hype.F1 is and always will be European its roots set in stone the majority of the teams are based in Britain where the engineering is the best..since f1 was taken over by a US firm its trying
to americanise the sport and are moving away from the tried and trusted blue ribbon European tracks the money might be flowing in America but the passion and heritage is sadly lacking.

[HakimRadio]

I live here, have passes from my company and i gotta tell ya, this is the most lame event i have been to, twice. If this is important, than nba summer league is the superbowl.. waste of tax dollars and the race is super boring here in vegas

[romangoadventureasia]

Hey buddy, the LV GP is unique as F1 also acts as the promoter so they make a lot more than the fees but also take on the financial risk.

[tuscanyjc]

No it wasn't 1.5 b (that the pr #) net delta was like 230 million & that was questionable

[SpeedBrazilOficial]

VERY GOOD. MAX VERSTAPPEN WORLD CHAMPION F1 2024❤

[MarktheSharkC]

The elite make money but the blue collar and your guest that come to Las Vegas got shit on!

[armenvegas]

Las vegas messed up by not charging F1 fees for using its likeness instead of the other way around