Las Vegas: a millionaire’s dream that risks turning into a nightmare for Liberty Media

In 2023, Las Vegas hosted a Grand Prix of F1 for the first time since 1982, with Liberty Media to directly manage the organization, an initiative that cost more than $500 million. Despite the circuit’s inclusion in the calendar until 2032, the project has proven more controversial than spectacular.

Between disrupted roads and economic losses for small traders

The circuit, with its route that crosses the famous Strip, has led to heavy infrastructural changes and upheavals in the city’s traffic system. Fences and barriers have turned the streets into chaos, isolating hundreds of local businesses and causing significant economic losses for small and medium-sized traders. And these are the ones most damaged by the dazzling lights of the turnovers prerogative of the entertainment giants

Lewis Hamilton (Mercedes AMG-Petronas F1 Team) in action during free practice for the 2024 Las Vegas GP

Record numbers, but widespread discontent

Although Liberty Media boasted a turnover of 1.5 billion dollars, the economic repercussions only favored large giants such as MGM Resorts e Caesars Entertainment. Meanwhile, the city administration, which collected 77 million dollars in taxes, had to spend over 4 million on an impact study. This imbalance prompted the County to impose strict conditions on Liberty Media, threatening to terminate the agreement by 2026.

Manholes, delays and class action: the chaos of the first edition

The first edition also left a bitter memory for the technical management: a blown manhole during free practice had damaged the Ferrari Of Carlos Sainzcausing a stoppage of more than five hours. The stands were evacuated and the next session was played behind closed doors. The handling of the incident resulted in a class action of over a billion dollars against Liberty Media, pushing the matter into the Nevada courtrooms.

Excellent Resignation: Greg Maffei Leaves Liberty Media

The tensions culminate with the announcement of the resignation of Greg Maffei, CEO of Liberty Mediawho will end his term at the end of the year. Maffei, accused of having arrogantly managed economic and political relations, leaves a controversial legacy, including illustrious enemies and possible millionaire consequences for the company. Las Vegas could risk following the manager of Italian origins if the whole system is not better calibrated.

Uncertain future for Las Vegas in F1? There are also comforting indicators

The 2023 event (the data from the edition that closed yesterday will arrive in the next few days) has had an extraordinary economic impact on the “city of sin”. The numbers speak for themselves: around 1.5 billion dollars generated, exceeding the last Super Bowl by 500 millionthe American football final, considered one of the most followed sporting events in the world.

Formula 1 in Nevada generated as much as 77 million dollars in taxes alone, compared to 33.6 million for the Super Bowl. Of this, 22 million were invested in local education, representing an important contribution to the community.

According to the “Las Vegas Convention and Visitors Authority”, the Grand Prix weekend generated a six-fold increase in media advertising for the city compared to the annual average. Formula 1 has thus become a real brand for the metropolis.

In conclusion, therefore, the match should not be at risk in the immediate future as there are also indicators that counteract certain negative elements (for example, both Friday and Saturday saw large flashes of emptiness in the stands, ndr). It’s about finding the right balance between the needs of the local community, the crazy expenses to keep the system alive and the earnings which, for some people, are very high.

Well, perhaps the problem is this: Las Vegas generates wealth for a few individuals in exchange for the forces deployed to make the event possible. From flagship to minefield, the Nevada Grand Prix finds itself at a crossroads. Will Liberty Media be able to safeguard in the long term an event that, for now, seems to divide rather than unite?

Photo credits: Mercedes-AMG Petronas F1 Team, F1

Here are two PAA-related questions for the provided news excerpt:

## World Today News Exclusive: The Las Vegas Grand Prix – Dream or Dilemma?

**Host:** Welcome to World Today News, where we delve into the issues shaping our world. Today, we’re dissecting⁤ the inaugural Las Vegas Grand Prix, an event that promised spectacular racing and economic windfall, but has sparked controversy and‌ left many questioning its long-term viability.

Joining us are **Ms. Sophia Rivera**, a local⁤ business owner impacted by the Grand Prix, and **Mr. Michael Thompson**, a sports economist who specializes in the impact of mega-events.⁢

Welcome to both of you.

**(Sophia and Michael express thanks)**

**Host:**

Let’s start⁣ by addressing⁣ the elephant in the room: the logistical chaos and economic ⁢disruption felt by many in Las Vegas, particularly small ⁤businesses. Ms. Rivera, your shop is located along the Strip.​ Can you share your experience during⁤ the Grand​ Prix weekend? What were the biggest challenges you faced, and how did they impact your‌ business?

**(Sophia ​shares her perspective, discussing traffic disruptions, ⁤customer access ⁣issues,⁢ and potential revenue losses. )**

**Host:**

Mr.⁤ Thompson, how common are these disruptions in cities hosting mega-events like the Grand Prix? What measures can host cities take to mitigate ⁣the negative impacts on local businesses ‍while reaping the economic benefits?

**(Michael provides a broader perspective, drawing ​on examples of other cities’ experiences and ⁣outlining strategies for mitigating negative impacts. He might discuss pre-event planning, community‍ engagement, and targeted⁣ support⁣ for affected businesses.)**

**Host:**

Now, ​let’s​ shift gears to the economic impact of the Grand Prix. ​While Liberty Media touted record-breaking revenue, the article highlights a​ stark contrast between the gains for large corporations and the struggles of‌ smaller‌ businesses. Ms. Rivera, did you see any tangible ⁣benefits from the Grand Prix⁢ in ‍your community?

**(Sophia expresses her view, potentially contrasting the large-scale ⁢economic claims with the ‍reality experienced by‌ smaller businesses like hers.)**

**Host:**

Mr. Thompson, is this disparity in economic ‌benefit a common trend with mega-events? How can cities ensure a ​fairer distribution of economic gains, particularly benefiting local communities?

**(Michael provides his analysis, discussing the potential pitfalls of relying solely on large corporations for economic growth and outlining strategies for inclusive development, such as community reinvestment programs and workforce development initiatives.)**

**Host:**

let’s talk about the future of the Las Vegas Grand Prix. With the resignation ​of CEO Greg Maffei and the ongoing legal challenges, some are⁣ questioning the event’s long-term viability.

Mr.⁤ Thompson, based on your expertise, what do you believe ‍will determine the success or ⁢failure of the Grand Prix⁢ in Las Vegas?

**(Michael outlines the key factors that will ‍influence the future of the event, emphasizing the need for transparent governance, community engagement, and a balanced ⁢approach to economic development.)**

**Host:**

Ms. Rivera, as a member of the local community, what do you hope ‌to see unfold with the Grand Prix moving forward?

**(Sophia expresses her hopes and concerns for the future, advocating for a more inclusive and sustainable approach to the event.)**

**Host:**

Thank you both for ⁢sharing your perspectives ​and insights. The Las Vegas Grand Prix⁤ presents a complex dilemma, forcing us to⁤ weigh the potential benefits of hosting a global event against the challenges it poses to local communities.

As we move forward, it’s essential to engage in open and honest conversations about how best to harness the power of mega-events for the benefit of ‍all stakeholders.

Join us next time on⁤ World Today ⁣News as we continue to⁢ explore the issues shaping‌ our planet.