Businesses allege big losses
While the 2023 Las Vegas F1 Grand Prix race itself was an exhilarating success, a group of local business owners is out to recoup millions of dollars it alleges the race cost them.
According to Front Office Sports last week, a group of nine businesses has approached the Las Vegas Convention and Visitors Authority (LVCVA) seeking reimbursement of an estimated $23m it claims to have lost in revenue.
The nine companies want the LVCVA to establish the recovery fund over claims vehicular and foot traffic nosedived over six months because of multiple road closures and entrance blocks.
you watch your business drop 50% or more in a matter of months”
Representing the entities is Nevada community activist and business development specialist Lisa Mayo-DeRiso. “Imagine not changing anything about your product, how you market, your customer service, guest quality, nothing, and yet you watch your business drop 50% or more in a matter of months,” said Mayo-DeRiso.
While the race earned Las Vegas plaudits and sportsbooks made record betting sums, this move by Mayo-DeRiso’s clients will generate more negative press among locals ahead of the 2024 Las Vegas Grand Prix.
Owners speak out
Construction for the 2024 race through Sin City is slated to start this spring, with traffic and pedestrian issues expected to increase yet again.
Restaurant owner Gino Ferraro wrote the Las Vegas Review-Journal claiming his business lost over $2m in revenue.
“How can our Las Vegas leadership allow local businesses to struggle and suffer for a three- or four-day event? Who profited? A few hotels? It doesn’t make sense,” Ferraro stated.
Jay’s Market owner Wade Bohn told LVSportsBiz.com the Grand Prix meant customers’ weren’t able to access his store on 109 East Flamingo Road, causing a decline in his firm’s 2022 revenue of $8.5m, to $4.2m-$4.3m in 2023.
Demanding recompense, Bohn laid the blame on Clark County officials.
We as a community got bamboozled, we got fooled.”
“They’re using taxpayer dollars to bring F1 into town. When F1 went before the county, they promised they would not be a hinderance, that they would be a part of the community.”
Bohn added: “We as a community got bamboozled, we got fooled.”
Flip side
FOS stated that the move by the local businesses reveals “a darker side” to the months of good press for Las Vegas’s renaissance as a sports mecca. Local businesses’ concerns could get further exacerbated next month when Super Bowl LVIII comes to town. Also adding to the negative press is a class-action lawsuit, which was recently transferred to federal court, brought by F1 fans after a drain cover collision cut short their viewing of a practice session.
Meanwhile, according to FOS, the LVCVA has not responded to the nine businesses’ request for compensation.