If clubs and restaurants refuse to pony up, sales reps for F1 — owned by billionaire John Malone’s Liberty Media — have warned that obstructions like barricades, stands and light stanchions could end up ruining the race for their customers, according to a source.
For a restaurant or club with 1,500 seats, the tab would soar to a whopping $2.25 million — regardless of how many guests can catch views from their roof decks, terraces and dining areas.
High-demand venues along the 3.8-mile circuit — slated to run through the heart of the Las Vegas Blvd during November’s Grand Prix — may pay $1,500 per head for licensing rights.
“They are literally shaking people down saying they will obstruct views unless they pay them,” one hacked-off casino owner on The Strip. “It seems insane that they are asking money for a public event that is taking place in the streets.” They are even going as far as threatening with bright lights will be shined toward the viewing areas of unlicensed venues, blinding guests trying to get a peek at the nighttime race. How absurd!
They are even sending out letters to venues like Planet Hollywood and Black Tap Craft Burgers and Beer — which are along the race route and will barely get a glimpse at the high speeds at these venues — comes with a subtle threat worthy of a page written like a mobster boss Bugsy Siegel. Get for real! These venues don’t have a very good view of the strip anyway.
“Las Vegas Grand Prix will use reasonable efforts to maintain sightedness from the licensee’s venue to the track/race,” according to the overview of the F1 proposal. “The license fee will equal the maximum occupancy of the licensee’s venue (per fire code) multiplied by $1,500.” B.S. Who signed up for this?
The big worry is that Vegas venues will be forced to pass the fees along to their high-rolling customers in the form of stratospheric cover charges that could soar past $2,000 a head, according to a Las Vegas executive who spoke on the condition of anonymity. Most people coming to this event will not even watch it from the stands or VIP areas. Because they will be drunk and going to the nearest entertainment venue of their choice. Let’s be real here.
One Las Vegas executive added he has direct knowledge of a venue that in recent days told Formula One it would not pay for licensing. In response, F1 is pressuring Las Vegas Grand Prix official sponsors to get that venue to cough up the cash, the source said.
“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,” the source close to the situation said. “They are trying to limit people’s ability to capitalize on the race.”
The three days of events, culminating with Saturday night’s Las Vegas Grand Prix will run from Nov. 16-18. It is estimated that as many as 300,000 F One fans will attend.
Formula One is paying Madison Square Gardens’ The Sphere Arena nearly $10 million for its empty parking lot to put up its own stands.
Ticket packages for the public have not sold out, according to the Formula One website.
The average ticket price for the three-day package is already $6,651, almost 50 percent more expensive than the $4,600 price for the Miami Grand Prix.
Run-of-the-mill hotel rooms for the weekend are charging $1,000 a night. Add the $6,651 average race tickets for three days — or the jacked-up cover to go to a restaurant with good views — and flights and it could easily become a $15,000 weekend for a couple before gambling.
Beer Park is officially partnered with Formula One and is charging $5,500 for full, three-day access to the venue’s indoor space including food and beverages, with over 75 HDTVs as well as the 9,000-square-foot outdoor terrace with trackside views.
In all, this F One event in Las Vegas will be a 10-year endeavor that will evolve into legal battles with strip venues and clubs not wanting to pay the franchise fees that the F1 organization is imposing. Seem kind of mobster-ish.