The Las Vegas Convention and Visitors Authority pulled a power play Tuesday by netting deals associated with the College Football Playoff national championship and the Pac-12, and by approving a 10-year, $100 million contract to continue hosting the Formula One Las Vegas Grand Prix through 2037.
The LVCVA approved the trio of sports-related deals during the tourism agency’s regular meeting, helping bolster the city’s claim to hold the title as the sports and entertainment capital of the world.
F1 extension
The 10-year F1 extension will ensure that the Las Vegas Grand Prix will continue annually through 2037 on the weekend before Thanksgiving, racing on a 3.8-mile street circuit that includes sections of Las Vegas Boulevard, Koval Lane and Harmon and Sands avenues.
The inaugural race in 2023 generated an estimated economic benefit for Southern Nevada of $1.5 billion, including $600 million spent by F1 to get the street circuit up to race standards. The 2024 and 2025 events had an economic impact of around $900 million and $800 million respectively, according to the LVCVA.
The extension includes a $100 million pledge by the tourism agency to spend $10 million each year for the Grand Prix to purchase $2.5 million in race tickets for current or prospective clients and spend $7.5 million to supplement race costs.
The LVCVA signed an initial three-year deal with F1 to host the race between 2023 and 2025 and then inked a two-year extension thereafter to hold the race in Las Vegas this year and in 2027. The new 10-year deal kicks in after the conclusion of next year’s race.
“This race produces an $800 million economic impact that makes us a focus of the global stage for the week that it is here,” Steve Hill, LVCVA president and CEO said. “It’s an enormous event. We think this is an exceptional deal for the community.”
Tuesday’s action by the LVCVA was the formal approval of the 10-year extension that was announced last month. The agreement, along with a separate 10-year agreement with Clark County, will include the installation of elements that will speed up the set up and tear down the race’s infrastructure, reducing traffic headaches.
“The extension of this race allows longer-term investments into the improvement of the experience for the attendees and that were raised, but also the other experience from the community during mobilization and the demobilization of this really important event,” Hill said. “Everyone is committed to spending money on more permanent infrastructure that will reduce the time that it takes to mobilize and demobilize, which I know the entire community and the businesses around the event will certainly appreciate.”
Infrastructure improvements aren’t expected to begin this year, according to LVCVA board member and Clark County Commissioner Jim Gibson.
“We’re excited that the things that we’re discussing may take a couple of years to get some of what we’re talking about today fully implemented and built, but it will make an enormous difference,” Gibson said.
CFP certification
Las Vegas-based financial consulting firm Applied Analysis predicted that the 2027 College Football Playoff championship at Allegiant Stadium will generate more than enough money to help organziers promote the event.
Las Vegas-based financial consulting firm Applied Analysis predicted that the event would generate around $540 million in economic impact, allowing the LVCVA to certify that the event would hit the $250 million threshold for that type of promotion.
By being certified by the LVCVA as an event generating at least $250 million, event organizers will be allowed to place advertisements on area highways, including Las Vegas Boulevard, which is otherwise not allowed under state law.
Pac-12 basketball tournaments
The Pac-12 men’s and women’s basketball tournaments will return to Las Vegas for at least two years, with the 2027 and 2028 events planned to take place at the MGM Grand Garden Arena.
The LVCVA will sponsor the event at a cost of $300,000 annually, bringing the event back to Las Vegas after a three-year hiatus while the conference underwent significant realignment.
Both the men’s and women’s tournaments will happen over five days and feature eight games each.
The first seven games and four rounds of the men’s tournament will be televised nationally on USA Network, with the championship game airing on CBS.
The Pac-12 basketball tournaments are expected to draw over 15,000 out-of-town visitors, generating over 13,000 incremental room nights.
Contact Mick Akers at makers@reviewjournal.com or 702-387-2920. Follow @mickakers on X.
