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Australian Grand Prix Corporation chairman Martin Pakula says the famed Formula 1 race lost the city a jaw-dropping $100 million in 2024. But even despite that fact, he wants the race to continue in the city and says that locals would have been furious had Formula 1 left for Sydney instead.
“I think quite understandably and justifiably, they would be furious [if the race went to Sydney],” Pakula told the Sydney Morning Herald. “I think Melbourne has fallen in love with the grand prix. I think the economic impact on the city is enormous.”
But what does it mean for the US? And how have similarly criticized races, such as the Las Vegas Grand Prix, fared by comparison?
Formula 1 Australian Grand Prix Tells Much Different Story Than Las Vegas GP
The inaugural Las Vegas Grand took place in 2023 and inconvenienced several residents and city works. The issues caused significant backlash and many Vegas residents pushed for the race to be moved off the iconic Las Vegas Strip.
“LVSportsBiz.com has learned there is talk behind the public scenes of the idea of moving the F1 race from the Strip to the Speedway site,” Alan Snel reported.
But the financial realities paint a far different picture. Reports suggest the 2023 LVGP generated $1.5 billion in revenue for the city of Las Vegas. The 2024 race did not match the pace, but it still netted $934 million for the city. In comparison to the $100 million loss Melbourne took, that is a stark contrast. It also explains why Formula 1 recently converted the Las Vegas Grand Prix paddock into its permanent U.S. headquarters.
Currently, Formula 1’s contract with the city of Las Vegas expires following the 2025 race. But the two sides seem eager to extend. And given the finances, it’s hard to imagine that a deal does not get done in the near future.