Las Vegas GP's Future Uncertain Beyond 2025
Why it matters: The F1 2026 calendar lists 24 events, but the Las Vegas Grand Prix stands out as the only one without a confirmed long-term contract beyond 2025. This is particularly notable as Formula One Management (FOM) directly promotes this high-profile race, having invested an estimated $600 million into its development, including land acquisition and facility construction.
The context: In recent seasons, FOM has shifted from merely selling calendar slots to actively promoting events itself. The Las Vegas Grand Prix, held on the famous Las Vegas Strip, is FOM's flagship self-promoted event.
Financial struggles: Despite the significant investment, the first two iterations of the Las Vegas GP fell short of FOM's financial expectations. Liberty Media, which owns FOM, reported decreases in ticketing and hospitality revenue specifically from the event.
- "Race promotion revenue decreased due to lower ticketing revenue generated from the Las Vegas Grand Prix," Liberty Media stated in its full-year 2024 financial results.
- Derek Chang, Liberty Media's new CEO, admitted in March that "The economics for Vegas missed internal expectations on revenue and OIBDA."
Corrective measures: To address the underperformance, Liberty Media has enacted several changes for 2025 and beyond:
- Revised strategy: Implementing new ticket product and pricing strategies based on two years of data.
- Cost management: Actively managing the event's cost structure.
- Organizational integration: Fully integrating the Las Vegas GP into F1's London-based team to leverage existing expertise.
- Ticketing in-house: Bringing the ticketing sales function back in-house to improve direct sales and customer experience.
- Local partnerships: Bolstering partnerships with local stakeholders in Las Vegas.
Contractual anomaly: Despite its inclusion on the published F1 2026 calendar, and despite statements from Las Vegas GP president Emily Prazer about an agreed two-year extension for 2026 and 2027, PlanetF1.com has confirmed that no formal contract is signed beyond the 2025 event. Commercial discussions are ongoing, with a formal announcement expected only once a deal is complete.
Potential reasons for the delay: While appetite for the race continues among local bodies like the Las Vegas Convention and Visitors Authority (LVCVA) and Clark County, several factors could explain the lack of a signed long-term deal:
- Local resistance: A long-term deal might exacerbate existing local opposition to the race.
- Investment bridge: A shorter, two-year deal could serve as a bridge to allow the event to prove profitability before a longer-term commitment.
- Share price protection: Locking in an event with a poor financial track record could be negatively received by the market.
- Confidence levels: The absence of a long-term contract could also signal a lingering lack of confidence in the event's sustained profitability.
What's next: Despite the contractual limbo, there's little doubt the event will continue. FOM boss Stefano Domenicali recently reiterated confidence, stating, "The contribution of Las Vegas Grand Prix in terms of economic input will be definitely much more important than what has been seen so far in the first two years." Liberty Media's goal remains to earn a return on its substantial investment, with Clark County having voted to recognize the event until 2032, hinting at an even longer partnership.