Formula 1 has secured what looks set to be a record payday with the deal to run an annual race in Las Vegas.
The sport's top man Stefano Domenicali flew to the city to announce that it would be joining the calendar from next season. The race in Sin City will be the third race hosted in the United States, joining the current Grands Prix in Austin and Miami.
The new 3.8-mile track is expected to give views of many of the city's world famous buildings, such as hotels including the Bellagio and Caesars Palace. Running over 50 laps, the Las Vegas Grand Prix will be held towards the end of November, starting from the 2023 season.
Glitz and glamour are a given for any sporting event held in the city, but the benefits for F1 do not stop at the increased profile the race will bring. Thanks to some terms of the contract that are unique to the sport, F1 will stage and promote the event itself rather than the host city paying a flat fee to do the honours.
That means all the cash that comes from sponsorship deals, ticket sales and other revenue streams will go straight to F1. It is believed that around £100m per race can be generated through such an arrangement, meaning the Las Vegas Grand Prix would be worth £1bn to the sport if, as is hoped, the deal goes on for 10 years.
The city itself will not miss out on cash, however. A source told the Daily Mail : "The local authorities have taken the view that any disruption the race will cause to the area is well worth the trouble. They will make money hand over fist in the casinos, hotels and restaurants. It is good for business all round. That is the conclusion all parties have come to."
By bringing another race to the US, F1 owners Liberty Media is making good on its pledge to raise the sport's popularity in the country. It has historically struggled to make many inroads into the market in the past, but the success of the annual race in Texas and Netflix's Drive to Survive docu-drama have seen that change.
It is not the first time the sport has held an event in Las Vegas, though the top brass will be hoping to do better than what was on offer in the early 1980s. The two races in that decade were held in the Caesars Palace car park and were widely regarded as flops.
"Las Vegas is known around the world for its excitement, hospitality, thrills, and the famous Strip," said Domenicali, who insisted on this venue to avoid a repeat of those botched attempts in the 1980s. "We cannot wait to be here next year."
