The Formula One professional auto racing league plans to buy land near the Las Vegas Strip for about $240 million as it bets on further acceleration of sports business in the nation's gambling capital.
The deal was announced in a quarterly earnings call with analysts by Englewood, Colorado-based Liberty Media, which acquired the Europe-based racing league in 2017. The league said in March it planned to host a race near the Vegas Strip in November 2023.
Las Vegas last hosted Formula One races in 1981 and 1982, but racing officials said this will be the first time the Strip is incorporated into the route, a 3.8-mile loop with 14 turns on which speeds could top 200 mph.
Liberty Media CEO Greg Maffei told analysts the company has entered into an agreement to acquire 39 acres east of the Vegas Strip “to lock in circuit design and create capacity for the pit and paddock, among other hospitality and race support venues.”
Liberty officials said the land is at the northeast corner of Koval Lane and Harmon Avenue. Seller information was not immediately available, but the Las Vegas Review Journal reported the land being acquired is owned by 3D Investments. Beverly Hills, California-based 3D did not immediately respond to a CoStar News request to comment.
“I expect that the transaction will close in the second quarter, and the purchase price was $240 million, which will be funded by cash on hand at the F1 group level,” Maffei said, noting the company expects to invest significant capital and operating resources beyond the land purchase to build out the track and get the race up and running.
“It’s too early to provide you with numbers, but we intend to update you later this year,” he said.
Race planning gears up as Las Vegas has significantly boosted its pro sports profile over the past two years with big developments, including the relocated Las Vegas Raiders’ new $1.9 billion football stadium that began hosting NFL games in 2020.
The NFL recently held its annual draft in Las Vegas, and the Super Bowl is scheduled for the Raiders’ venue, known as Allegiant Stadium, in February 2024.
Las Vegas in 2017 landed the NHL’s Golden Knights. Not far from the Strip, developer Oak View Group bought land with plans to build a $3 billion entertainment district with two arenas, a casino and hotel, with the goal of luring an NBA team to one of those arenas.