The parent company of the Las Vegas Grand Prix has received almost 20 permits from Clark County to improve the surfaces and infrastructure on the Las Vegas Strip and nearby streets for the upcoming Formula One race in November. However, there are no permits sought by Liberty Media to construct barriers that would obstruct the view of businesses on the Strip during the Nov. 18 race.
The New York Post reported that Formula One threatened to block the views of restaurants and clubs on the Strip overlooking the 3.8-mile racecourse unless a licensing fee was paid. The report also stated that "lights will be shined towards the viewing areas of unlicensed venues, blinding guests trying to get a peek at the nighttime race."
According to the Post story, race organizers are asking establishments with views to pay $1,500 per person. Liberty Media reportedly sent a letter to establishments that demanded payment and threatened to install barriers to obstruct views of the racecourse if they refused to pay the fee.
Liberty Media has not produced the letter, nor has it confirmed whether it was sent. Businesses that may have received it have not seen it either, according to management contacted by the Sun. However, the company has not denied making the request.
In a statement to the Sun, race officials said, "F1 commonly executes licensing agreements to protect its intellectual property rights, and the Las Vegas Grand Prix is following this same approach. In addition, these arrangements allow the Las Vegas Grand Prix to ensure the fan experience in its partner venues meets the expectations for this event."
Many resort companies on the Strip are already partners with the race. These partnerships allow them to construct Strip-adjacent grandstands, sell viewing tickets, and host official events using the league's branding. Caesars Entertainment, MGM Resorts International, Wynn Resorts, Resorts World, Venetian, Hard Rock International (Mirage), and the Las Vegas Convention and Visitors Authority are among the companies involved.
It is unclear how restaurants that lease space from a resort company that is already a partner would be impacted.
The county has not provided any permits that would allow Formula One to intentionally obstruct the view of neighboring businesses. This action would seem to violate the property rights of those businesses. The Sun searched an online permit database but did not find an event permit.
It is probable that this occurred because the county passed a resolution in February which waived the 120-day deadline for filing special event applications for the race due to the existence of a "good cause" and the absence of any undue burden on the county or its citizens.
The resolution also states that the county will collaborate with race officials and affiliates to organize the race but emphasizes that it does not intend to exempt any other demands of the Clark County code or any other regulations, laws, permit requirements, standards, or conditions.
Hundreds of millions of dollars have been invested by Liberty Media towards preparing for the upcoming race. The necessary permits have been approved for repaving the Strip and constructing a 300,000-square-foot paddock facility, which will serve as the group's permanent headquarters on Koval Lane and Harmon Avenue, among other preparations.
On April 2, road construction began on Sands Avenue which led to lane closures and heavy traffic congestion. The county has announced that the construction work will be ongoing until mid-September.
In late May, a race official requested $40 million in public funds for infrastructure upgrades necessary for the upcoming road race. The total cost of these upgrades is expected to reach $80 million.
On a vote of 4-3, the commission granted approval for staff to initiate negotiations regarding the county's contribution. Commissioners Marilyn Kirkpatrick, Justin Jones, and Michael Naft dissented from the negotiations.
During the May meeting, Naft expressed confusion about the county's perspective on the situation. While they see the value in incentivizing special events and businesses to come to the community, they are unsure about the negotiating process and what the county is specifically aiming for.
According to Naft, the arrival of Formula One is bound to have a positive impact on the economy. However, he feels that the negotiation process might be a little overdue.
Meanwhile, Stephanie Allen, who represented the race organizers at the meeting, stated that the money was requested to fund the improvement of Clark County's roads. These improvements will be used exclusively by the race organizers, except during the annual race.
The Las Vegas Grand Prix will take place on a Saturday, marking the first time in over 40 years that the league has held a race on that day. Formula One hopes to make a big impression in the U.S. market by showcasing its cars under the bright lights of the Strip. Additionally, the league will also hold a race in Miami in October.
Race officials have announced that the 50-lap race will be held annually in Las Vegas through 2032, with an expected attendance of 170,000 people.
The event has received long-term investment from Liberty Media and F1, and officials hope that the local community will benefit from the race's economic value.
