The race is the first to be promoted and organised by Liberty and the F1 organisation, with the support of the city authorities and the main casino organisations.
As a starting point, Liberty purchased a site on which to build a permanent pit and paddock infrastructure, with the construction having to move quickly in order to be ready for November’s race.
In addition to costs associated with the construction, Liberty has come extra challenges as it resurfaces the roads associated with the track and other issues have emerged.
“I am pleased to say preparations are running on schedule,” Liberty CEO Greg Maffei said in a call with Wall Street analysts.
“Despite inflationary cost pressures, we expect no change in revenue and profitability assumptions that we laid out previously. We are increasing CapEx estimates for the paddock building and track work.
“We remain confident in the return profile of this incredible project, which will support the incremental capital investment that we are making.”
Liberty chief financial officer Brian Wilding confirmed that costs have gone beyond the original estimates.
“Our paddock building is now 85% complete,” said Wilding. “We expect CapEx related to the Vegas race including both the paddock building structure and track-related CapEx to be close to $400m, of which approximately $155m was incurred in the first half of the year.
Source: Autosport