Skip to main content
BoF Logo

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.

Inside Formula 1′s $500 Million Vegas Splurge

Through six-figure events, influencer trips and merch releases, brands are betting big on F1′s much-hyped return to Sin City.
TK
Formula 1 has spent over $500 million in transforming the Las Vegas Strip into a racetrack in preparation for the long-awaited Grand Prix this weekend. (Getty Images)

Key insights

  • The Las Vegas Grand Prix, billed by F1 to be “the greatest show on earth,” is set to be the largest pop culture showcase in recent sporting history.
  • With hundreds of thousands descending on Vegas and millions more tuning in live, brands are getting a piece of the action by partnering with F1 teams and releasing special capsule collections.
  • Tag Heuer estimated it would cost $20,000 per person to fly in VIP guests and influencers for the race.

From a sporting perspective, Formula 1′s marquee race in Las Vegas this weekend will have little effect on the outcome of the overall competition. Red Bull Racing’s star Dutch driver Max Verstappen was already crowned as the winner of the 2023 championship back in early October, with six races of the season still to go.

In many ways, the stakes are higher for the dozens of fashion brands on the sidelines, from Tommy Hilfiger and Sacai to Puma and Palace, competing in a race of their own to get a slice of the action amidst a dizzying slew of partnerships, star-studded events and product drops.

The race will be the most anticipated event in the F1 competition since it was announced last year. Formula 1′s new owner, Liberty Media Corporation, reportedly spent $500 million on the transformation of the Las Vegas strip into a racetrack, on which 100,000 fans — including a long list of VIPs like LeBron James and Rihanna — are set to descend each day from Thursday to Saturday, and millions more tuning in on TV across the world. On Wednesday, Bad Bunny, Will.i.am and others took to the stage in a glitzy opening ceremony on the racetrack’s starting grid.

Formula 1 is projecting the spectacle will generate an overall economic impact of $1.3 billion, on par with Super Bowl LVII, which took place in February. Through partnerships with teams and drivers, organised influencer trips and other costly special projects, the fashion industry has played an outsize role in contributing to that figure.

ADVERTISEMENT

For brands, the price of entry was steep, whether they’re operating a pop-up store on the strip or hosting an afterparty and flying in tastemaker guests. Tag Heuer, a partner of the championship-winning Red Bull Racing team, will spend roughly €20,000 ($21,443) per guest to fly out VIP clients and high-profile influencers for the weekend, according to chief marketing officer George Ciz. But if the race stirs up enough buzz, it just might all be worth it.

“Vegas is going to be one of the greatest sporting events in US history,” said Tommy Hilfiger, whose namesake brand sponsors the Mercedes-AMG F1 team. “In years to come it will be bigger than the Super Bowl.”

Hilfiger added that the brand’s long-running association with F1 has allowed it to court an elevated consumer group, and that the brand is witnessing a particular increase in demand from US consumers as the sport grows in North America.

While Formula 1 lags far behind football and basketball both in terms of popularity and commercial partnerships, the sport offers an opportunity to get in front of a new kind of audience. The average F1 fan age is 32, far younger than that of baseball’s MLB (57), American football’s NFL (50), and the NBA (42), per Nielsen and F1 research. Younger fans have flocked to F1 under Liberty Media Corporation’s ownership and its subsequent modernisation of the sport; its female fanbase has also soared.

“F1 has a fan demographic most other sports could only dream of,” said Toni Cowan-Brown, a Formula 1 content creator known for championing the role of women in the sport. “I think there’s a massive untapped market for brands to cater to by creating exciting, wearable merch that is good quality.”


Alpha Tauri F1 drivers Yuki Tsunoda and Liam Lawson showing off the Red Bull-owned fashion line's collaboration with Californian artist Brendan Monroe.
Alpha Tauri F1 drivers Yuki Tsunoda and Liam Lawson showing off the Red Bull-owned fashion line's collaboration with Californian artist Brendan Monroe. (Alpha Tauri)

Seizing the Race

Tommy Hilfiger, the brand, is an official partner of Apple Original Film’s upcoming F1 movie, “Apex”, starring Brad Pitt and Damson Idris and co-produced by seven-time championship winner Lewis Hamilton (a collaboration first teased when filming began at the British Grand Prix in July).

It’s certainly not the only retailer to bet on the sport this weekend.

ADVERTISEMENT

Palace, F1, Las Vegas, Alpine F1, Kappa
British streetwear label Palace collaborated with the Alpine F1 team and heritage sportswear brand Kappa, ahead of the Vegas Grand Prix. (Dominic Marley)

On Monday, British streetwear label Palace and sportswear brand Kappa announced a collaboration with the Alpine F1 team, whose cars will be wrapped in a colourful one-off design and the drivers dressed in bespoke uniforms and helmets carrying each of the brand’s logos, offering valuable product placement throughout the weekend.

Japanese luxury label Sacai, meanwhile, will launch a collaboration with Mercedes-AMG, a capsule collection that includes jackets, T-shirts and jumpsuits, which is set to be sold via Nordstrom and premiered at AMG’s Speed City. Palm Angels is releasing a set of limited edition Las Vegas-themed T-shirts as part of its ongoing partnership with the Haas F1 team; AlphaTauri, the Red Bull-owned fashion line, will release a capsule collection with Californian artist Brendan Monroe; and F1 driver Lewis Hamilton’s +44 label will drop a capsule collection in collaboration with Takashi Murakami celebrating the race. A$AP Rocky will also be in town to launch the first collection of his tenure as Puma’s creative director in the Formula 1 universe.

“The collaboration gives Sacai the potential to exist in a completely new way ... the beginning of an exciting new chapter for both brands and the world of motorsports,” said Sacai founder and creative director Chitose Abe.

This week, F1′s largest collaborator in fashion, Puma, released its first collection designed by A$AP Rocky as the brand’s creative director for the sport. The collection includes streetwear-inspired pieces such as a tattered racing balaclava, denim shorts, a long sleeve T-shirt with removable driving gloves and a distressed baseball cap — a considerable departure from logo-heavy replica team jerseys which make up the bulk of F1′s current merch offering.

Puma signed a landmark multi-year licensing deal to exclusively produce and sell F1 apparel, footwear and merch in May.

The goal of his multiyear partnership with the German sportswear brand is to turbocharge F1′s cultural revival

“I’m just really glad that what was once a really traditional, conservative industry is ready to open up and explore new things, especially when it comes to fashion,” Rocky told BoF last month.

Case Study, LeBron James, Fashion's New Rules for Sports MarketingOpens in new window
Further Reading

Case Study | Fashion’s New Rules For Sports Marketing

Capitalising on sport’s soaring commercial and cultural relevance is becoming a primary focus for fashion brands. Winning sports-marketing strategies today hinge on building long-term, collaborative partnerships with athletes and organisations that resonate with a brand’s target consumers, as experts in BoF’s latest case study explain.

How Fashion Entered the Formula One Race

A new owner, media-friendly strategy and an upcoming Brad Pitt film have helped catapult Formula One into the cultural spotlight. For brands, there are untapped opportunities in the sport – “like a Super Bowl every weekend”.

About the author
Daniel-Yaw  Miller
Daniel-Yaw Miller

Daniel-Yaw Miller is Senior Editorial Associate at The Business of Fashion. He is based in London and covers menswear, streetwear and sport.

© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions

More from Retail
Analysis and advice from the front lines of the retail transformation.

Promising Signs for Macy’s Turnaround

Sales fell in the retailer’s first quarter, but were up at 50 stores where new ideas are being tested. CEO Tony Spring tells BoF he’s just getting started.


view more

Subscribe to the BoF Daily Digest

The essential daily round-up of fashion news, analysis, and breaking news alerts.

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.
CONNECT WITH US ON
© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions, Privacy Policy, Cookie Policy and Accessibility Statement.