Formula One has decided to reduce recently announced fees for restaurants and club along the Vegas Strip during the November race, according to a recent news report in the New York Post. The change reportedly resulted from a backlash from clubs along the Vegas Strip.
The previously proposed fees could have cost local businesses to pay “pay $1,500 per head for licensing rights” that would generate millions of dollars in licensing fees, the report said.
Liberty Media Formula One sales reps reportedly recently issued the warning, stating that if clubs and restaurants do not pay, obstructions like barricades, stands and light stanchions could end up ruining the race for their customers.”
For restaurant and club owners, the fees could have added up to millions, depending on their seating capacity.
However, Formula One has replaced the previous per-head fee to a flat rate per venue of $50,000.
Gaming America contributor Oliver Lovat recently shared his thoughts regarding the impact large fees could have on local businesses.
He said, “It seems that if those operating F1 enact proposals to take punitive action against independent businesses that are in proximity of the track, without acknowledging that those same businesses may have incurred diminished takings as a result of restricted access over the weekend, and months of inconveniences as a consequence of an event on a public highway, there will be a clear breakdown of the compact that has existed so successfully in building Las Vegas as a major destination."
The Formula 1 Heineken Silver Las Vegas Grand Prix will take place on the Vegas Strip from November 16 to November 18.
