The first-ever Las Vegas Grand Prix is set for this weekend and could have a large impact on the continued growth of the Formula 1 (F1) sport in the U.S. and globally.
Here's a look at the race and what investors need to know.
How to Watch: The Las Vegas Grand Prix will have events and coverage throughout the weekend leading up to the race, with the main race broadcast in the U.S. by ESPN as part of a media rights deal for the league secured by Walt Disney Co DIS.
The official race broadcast is set for 12:55 a.m. ET on Sunday, Nov. 19 on ESPN and the ESPN+ streaming platform.
The night race from Formula One Group FWONAFWONK is one of a handful during the 2023 season held in the later part of the day. With the race set along the Las Vegas Strip, the night race will feature the neon lights of the famous U.S. city. This marks the latest race by time of day ever hosted by F1, according to ESPN.
Related Link: Apple Could Be Revving Up Formula One Global Rights
What to Know: The Las Vegas Grand Prix is one of three U.S. races on the calendar in the 2023 season and has been called "the biggest race F1 has ever hosted" due to an estimated cost of over $500 million.
On Thursday, the first practice for the race was canceled due to road conditions from a drain cover, which is the latest in potential controversies.
Once recognized as a huge race that would drive demand to the city of Las Vegas, new reports show limited demand and a potential overestimation of demand from fans, according to the Associated Press.
Tickets that were supposed to be sold out are still available and secondary ticket markets have witnessed prices coming down. Hotel prices for properties on the Las Vegas Strip have also dropped leading up to the race.
Star F1 driver Max Verstappen has also been part of the race's controversy.
"First of all, I think we are there more for the show than the racing itself if you look at the layout of the track," Verstappen said. "But you know, I'm actually not that into it. I'm more like, ‘I'll go there and do my thing and be gone again.'"
Verstappen's comments aren't great for the city hoping to continue hosting the race annually.
Along with F1 and Disney stock, another company that could see interest from investors during and after the race is Sphere Entertainment SPHR, the giant entertainment venue in Las Vegas.
The Sphere's exterior LED screen will show content like driver cards, real-time positions and more during the race.
"This is one of the world's premier sporting events, and we are ready to showcase Sphere to our global audience via F1 — both in person in Las Vegas and watching around the world — demonstrating the unparalleled technological and creative capabilities of the Exosphere," MSG Entertainment Executive Vice President Marquee Events and Operations Joel Fisher said.
Betting Odds: Along with the controversies, weaker-than-expected fan demand and the late start time for viewers, a season that has already crowned a winner could be a reason for a lack of interest.
Verstappen has won 17 of the 20 F1 races and clinched his third straight F1 World Championship back in October. That means that the race has less of an impact in terms of standings.
At DraftKings Inc DKNG, Verstappen is the heavy betting favorite to win the Las Vegas race with odds of -330. Ranking behind Verstappen are Charles Leclerc (+550), Lando Norris (+1400), Lewis Hamilton (+1600) and Sergio Perez (+2000).
F1 Growth: Streaming giant Netflix Inc NFLX is often recognized as a big contributor to the growth of F1 in the U.S. Well-loved globally, the sport had a limited audience in the U.S. before the docuseries "Drive to Survive" was released.
Earlier this year, the 2023 Miami Grand Prix became the second-most watched F1 race in U.S. history according to Front Office Sports. The May 2023 race was watched by an average of 1.96 million viewers on ABC, trailing only the inaugural 2022 Miami Grand Prix on ABC, which averaged 2.6 million viewers.
The F1 United States Grand Prix in Austin Texas in October 2023 saw fewer viewers with a reported 1.17 million viewers during the race, compared to 1.34 million in 2022 and 1.41 million in 2021 according to Auto Week.
Overall, U.S. F1 viewership is down around 9% year-over-year for the 2023 racing season with an average of 1.1 million viewers, which comes as Disney is paying $85 million annually for the media rights.
This marks the first time F1 has been in Las Vegas since the 1980s. That decade also marked the first time the country hosted three races in the same year.
The 2023 season saw the U.S. as the most prominent country for races and the performance of Las Vegas in terms of fans, experience and viewership could help determine the future of the sport in the U.S.
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