Following much backlash from Las Vegas business owners and race fans, Formula One (F1) has backtracked on its attempts to block race views for Strip-facing venues that don’t pay licensing fees of $1,500 multiplied by maximum capacity for the upcoming Las Vegas Grand Prix, and will instead slash those fees to a flat rate of about $50,000.
Anonymous Strip sources first told the New York Post about the fees earlier this summer, which triggered a lot of controversy around the community—many saw it as a slap in the face, given that the race is already costing operators a lot of money in terms of sponsorships as well as road closures throughout the three-day event.
After news of the steep fees broke, F1 and parent company Liberty Media acknowledged and defended the requests, saying that it was common practice to do so for its other races, some also located in urban areas such as Monaco.
However, the Post’s sources argued vehemently that the Las Vegas community is trying to convince the sport’s high-paying international clientele to return several times a year, not just once for the soon-to-be annual race. If the guest experience is further hampered by high fees, the sources argued, people won’t want to come back, in turn making the race a poor investment for all involved.
“There is a certain line they are crossing [by] telling someone who has spent billions on their property that you are shutting the Strip down for construction and then asking them to pay for seats,” one of the Post’s sources said in the original report.
This new system is already being received much better.
“This venue fee is much smarter,” one source told the Post. “It’s much more in line with what the Super Bowl will charge” when it comes to town in February of next year.
F1 declined to comment on the recent change of heart to the Post.
In addition to the in-person views, the new flat fee will also give venues a direct cable feed to the race itself, which is set to take place November 18. As far as tickets go, the cheapest packages start at a cool $2,000.
