Marketing Channel Perspective on Formula One US Market Entry: Las Vegas Grand Prix
DOI:
https://doi.org/10.58445/rars.4235Keywords:
Marketing Management, Vertical Marketing System(VMS), Horizontal Marketing System (HMS), Multichannel Marketing System (MMS), Corporate VMS, Contractual VMS, Administered VMS, Sport Management, Formula One, Liberty Media, US Market Entry, the Las Vegas Grand PrixAbstract
This paper analyzes Formula One's entry into the US market through the lens of marketing channels. Formula One is described as a global media and entertainment property that licences promotional rights to local promoters and operates a contractual vertical marketing system through its race-hosting structure. The paper examines F1’s historical barriers, strategy shifts, and transformation into a self-promoted corporate vertical marketing system in Las Vegas. The research uses qualitative pattern matching across official files, sports business literature, and peer-reviewed papers to evaluate how Liberty Media captured 100% of revenue, increased credibility across promoters, demonstrated commitment to local authorities, and overturned its previous brand image by adopting a new structure. The structure is described as Contractual Vertical Marketing System (Contractual VMS), Corporate Vertical Marketing System (Corporate VMS), and Horizontal Marketing System (HMS). This research also finds that Liberty Media mitigated fixed-cost risk and operational liabilities through a multi-use commercial strategy. This case study offers a unique perspective on sports management applications, highlighting Contractual VMS and Corporate VMS while also incorporating HMS partnerships. It explores a potential framework for structuring modern sports business entities.
References
Barretto, L. (2020a). Analysis: What the new Concorde Agreement means for Formula 1 | formula 1®. Formula One. https://www.formula1.com/en/latest/article/analysis-what-the-new-concorde-agreement-means-for-formula-1.1Z97Z6vRwfDTHVhGbSS510
Barretto, L. (2020b). The 2021 F1 cost cap explained – what has changed, and why? | formula 1®. Formula One. https://www.formula1.com/en/latest/article/the-2021-f1-cost-cap-explained-what-has-changed-and-why.5O1Te8udKLmkUl4PyVZtUJ
The beginner’s guide to the 2026 F1 calendar. Formula One. (2026). https://www.formula1.com/en/latest/article/the-beginners-guide-to-the-formula-1-grand-prix-calendar.VEmteiTb3F3tE95A7qke7
Bitrix24. (2024, January 17). Vertical Marketing Systems: General overview. Bitrix24. https://www.bitrix24.com/articles/vertical-marketing-systems-general-overview.php#content-section-0
Braybrook, R. (2024). Which country has hosted the most F1 races? tracks with the most Grands Prix. https://www.motorsport.com/f1/news/which-country-hosted-most-f1-races/10560961/
Brittle, C. (2024, May 23). F1 seeks “hosting fee increase” for Monaco GP to continue on Calendar. BlackBook Motorsport. https://www.blackbookmotorsport.com/news/f1-monaco-grand-prix-liberty-media-hosting-fee/
Brittle, C. (2026, February 26). F1 revenue rises 14% to US$3.87bn in 2025. SportsPro. https://www.sportspro.com/news/finance-investment/f1-financial-results-liberty-media-revenue-2025-february-2026/
Camping, kids and F1 | Austin Family Magazine. Austin Family. (n.d.). https://austinfamily.com/camping-kids-and-f1/
Cleeren, F. (2026). F1 to stay in Las Vegas until 2037 after signing 10-year extension. Motorsport. https://www.motorsport.com/f1/news/f1-to-stay-in-las-vegas-until-2037-after-signing-10-year-extension/10826828/
Controversy at U.S. Grand Prix | june 19, 2005 | history. History. (2009). https://www.history.com/this-day-in-history/june-19/controversy-at-u-s-grand-prix
Cooper, A. (2024). How liberty’s las vegas F1 gamble paid off. Autosport. https://www.autosport.com/f1/news/how-libertys-las-vegas-f1-gamble-paid-off/10594282/
Crypto.com and Formula 1 extend partnership through to 2030 | formula 1®. Formula One. (2024). https://www.formula1.com/en/latest/article/crypto-com-and-formula-1-extend-partnership-through-to-2030.1fN9lgaYJ3crSITENVLBwc
Darika, K. (2025). How global brands use Formula 1 as a marketing platform to reach Gen Z audiences [Working paper]. SSRN. ssrn.com
Disney’s ownership of ducks, angels not what it imagined. Sports Business Journal. (2002, August 29). https://www.sportsbusinessjournal.com/Daily/Issues/2002/08/29/Franchises/Disneys-Ownership-Of-Ducks-Angels-Not-What-It-Imagined/
Elshebiny, Y. (2023). F1 in Las Vegas: The crazy history of the caesars palace grand prix - gpfans.com. GPFans. https://www.gpfans.com/en/f1-news/1002606/f1-las-vegas-history-caesars-palace-grand-prix/
F1 Atlas. (2026, April 23). How F1 makes money: TV rights, race fees and team payments. https://thef1db.com/blog/f1-how-f1-makes-money
Federation Internationale de l’Automobile. (2026, July 7). Organisation. https://www.fia.com/organisation
Formula 1. (2024, January 23). Madrid to join Formula 1 calendar from 2026. Formula 1®. https://www.formula1.com/en/latest/article/madrid-formula-1-calendar-2026-spanish-grand-prix.rKwSPJ74MczwzDhHVxdQz
Fox, M. (2025). F1's marketing drive: Cracking the code to capturing the U.S. market [Undergraduate thesis, University of Lynchburg]. Digital Showcase @ University of Lynchburg. lynchburg.edu
Fryer, J. (2023, October 16). AMEX partners with F1 in 1st new sports sponsorship for payment company in more than a decade | AP news. Associated Press News. https://apnews.com/article/f1-american-express-americas-sponsorship-4c363929f16c224b23b8566c3e402460
Goodman, W. (2025). F1: The movie fact checked by drivers Pierre Gasly, Franco colapinto. https://www.menshealth.com/entertainment/a65254856/f1-movie-fact-check-drivers-alpine-pierre-gasly-franco-colapinto/
Graham, M. (2026). How the Miami GP became F1’s most polarizing cultural force - yahoo sports. yahoo! finance. https://sports.yahoo.com/articles/miami-gp-became-f1-most-203041553.html
Grand prix plaza. The Official Site of Grand Prix Plaza. (2026). https://www.grandprixplaza.com/
Hamilton, M. (2026). From the archive: The day F1 alienated its US audience. Autosport. https://www.autosport.com/f1/news/from-the-archive-2005-united-states-grand-prix/10804049/
Hart, I. (2025). The rise of formula 1: From grand prix to global brand. License Global. https://www.licenseglobal.com/motorsport/the-rise-of-formula-1-from-grand-prix-to-global-brand
Hawes, C. (2024). How Liberty Media became one of the world’s most valuable sports empires. CNBC. https://www.cnbc.com/2024/10/21/how-liberty-media-became-one-of-the-worlds-most-valuable-sports-empires.html
Hillary McAfee, C. G. (2025, November 26). How MGM, Wynn, and Caesars took over Las Vegas grand prix with casino activations. https://cdcgaming.com/commentary/how-mgm-wynn-and-caesars-took-over-las-vegas-grand-prix-with-casino-activations/
Hirsh, L. (2023). Formula One bets nearly $300 million on Las Vegas as Next Big Hub for Auto Racing. CoStar News. https://www.costar.com/article/121688344/formula-one-bets-nearly-300-million-on-las-vegas-as-next-big-hub-for-auto-racing
History of the Circuit | Las Vegas Strip Circuit. TicketsGP. (2026). https://www.lasvegas.gp/en/history-of-the-circuit-11
How the 2005 US GP became a farce - chain bear explains - youtube. Autosport. (2018). https://www.youtube.com/watch?v=fIjw5gI3rKE
Jaeggi, E. (2024). How stars like Taylor Swift and Eminem ended up at the F1 race in Austin. https://www.autosport.com/f1/news/from-elton-john-to-eminem-how-cota-attracts-the-biggest-stars-in-music/10664412/
Khorounzhiy, V. (2020). Why I love: The 2005 US Grand Prix - The Race. The Race. https://www.the-race.com/formula-1/why-i-love-the-2005-us-grand-prix/
Lamonato, M. (2023, November 14). The “goat track” that hosted F1’s first race in Vegas - and the “suffering” it took for Alan Jones to win it. Fox Sports. https://www.foxsports.com.au/motorsport/formula-one/the-goat-track-that-hosted-f1s-first-race-in-vegas-and-the-suffering-it-took-for-alan-jones-to-win-it/news-story/037da58f08bdd94a3cb026a618721af7
Liberty completes F1 acquisition. Formula One. (2017). https://www.formula1.com/en/latest/article/liberty-completes-f1-acquisition.3zzGTfOwC4OkEc8EAKMKKw
Liberty Media Corp Company Profile - Liberty Media Corp Overview. GlobalData. (2026). https://www.globaldata.com/company-profile/liberty-media-corp/
Liberty Media Corporation agrees to acquire Formula One :: Liberty Media Corporation (FWONA). Liberty Media. (2016). https://www.libertymedia.com/investors/news-events/press-releases/detail/139/liberty-media-corporation-agrees-to-acquire-formula-one
Liberty Media Corporation reports First Quarter 2026 financial and operating results. Liberty Media Corporation. (2026, May 7). https://www.libertymedia.com/news/detail/584/liberty-media-corporation-reports-first-quarter-2026
Liberty Media Corporation. (2017, January 23). Form 8-K. U.S. Securities and Exchange Commission. sec.gov
Maher, T. (2025). F1’s most controversial races: The 2005 United States Grand Prix. PlanetF1.com. https://www.planetf1.com/features/f1-controversial-races-2005-united-states-grand-prix
MasterClass. (2022). Vertical marketing system: 3 types of VMS - 2026. https://www.masterclass.com/articles/vertical-marketing-system
Masunaga, S. (2015, November 12). From the Mighty Ducks to the Angels: Disney’s track record with sports. Los Angeles Times. https://www.latimes.com/business/la-fi-disney-iger-20151112-htmlstory.html
McLaren’s lesser-known history in Las Vegas. McLaren Racing. (2025). https://www.mclaren.com/racing/heritage/1982-caesars-palace-gp/
Mee, L. (2026). F1 Miami GP announces Major Paddock Club expansion for 2027. Motorsport. https://www.motorsport.com/f1/news/f1-miami-gp-announces-major-paddock-club-expansion-for-2027/10816933/
Mehta, S. (2024). Is hosting an F1 race financially feasible? – Michigan Journal of Economics. Michigan Journal of Economics. https://sites.lsa.umich.edu/mje/2024/04/29/is-hosting-an-f1-race-financially-feasible/
Moxon, D. (2025). United States Grand Prix makes major announcement just hours before F1 race - mirror online. Mirror. https://www.mirror.co.uk/sport/formula-1/breaking-us-gp-new-contract-36094442
News Corp.. and TCI buy 40% of Cablevision’s Sports Holdings. Sports Business Journal. (1997, June 20). https://www.sportsbusinessjournal.com/Daily/Issues/1997/06/20/Sports-Media/NEWS-CORP-AND-TCI-BUY-40-OF-CABLEVISIONS-SPORTS-HOLDINGS/
Our story - F1 miami grand prix. Formula 1 Crypto.com Miami Grand Prix. (2026a). https://f1miamigp.com/history/
Rackham, A. (2026). How Netflix’s drive to survive triggered a new F1 celebrity age. BBC. https://www.bbc.com/news/articles/cp8rz13gdx0o
Reuters, & Authors, M. (2022). F1 owners Liberty Media to buy Las Vegas land for $240 million. ESPN. https://www.espn.com/f1/story/_/id/33868384/f1-owners-liberty-media-buy-las-vegas-land-240-mln
Richards, G. (2023). Formula One gambles on Las Vegas spectacular to break US market | formula one | the guardian. The Guardian. https://www.theguardian.com/sport/2023/nov/12/formula-one-gambles-on-las-vegas-spectacular-to-break-us-market
Smith, L. (2026, February 27). Why F1’s ‘drive to survive’ is still Netflix’s ‘Perfect soap opera’ after eight seasons - The Athletic. The Athletics. https://www.nytimes.com/athletic/7073812/2026/02/27/drive-to-survive-f1-netlfix-popularity/
Sprint qualifying to debut at three Grands Prix in 2021 following unanimous agreement from teams | formula 1®. Formula One. (2021). https://www.formula1.com/en/latest/article/breaking-sprint-qualifying-to-debut-at-three-grands-prix-in-2021-following.1v9LRuPpTk9JXpmE5xK4sK
Stanciuc, A.-M. (2026). Ai is now an F1 sponsor, a strategist, and a Tech director. thenextweb. https://thenextweb.com/news/formula-one-ai-sponsorship-strategy-2026
The Story of the Formula 1 Crypto.com Miami Grand Prix So Far. Formula 1 Crypto.com Miami Grand Prix. (2026b). https://f1miamigp.com/news/the-story-of-the-miami-grand-prix-so-far/?srsltid=AfmBOopmwqTJQowsQQGOB4IkgTfJjGt2KBHKm1wtFrLr6CXrHIwwdmXs
Stotlar, D. K. (2000). Vertical integration in sport. Journal of Sport Management, 14(1), 1–7. https://doi.org/10.1123/jsm.14.1.1
Subramanian, P. (2023). F1 will “inject $1.2 billion” into Las Vegas: Liberty Media CEO. yahoo! finance. https://finance.yahoo.com/news/f1-will-inject-12-billion-into-las-vegas-liberty-media-ceo-193009791.html
T-Moblie. (2024, November 18). T-Mobile to debut new 5G-fueled fan experiences at Formula 1 Heineken Silver Las Vegas Grand Prix - T-Mobile Newsroom. https://www.t-mobile.com/news/network/t-mobile-to-launch-5g-fan-experiences-at-las-vegas-grand-prix
Track layout - formula 1 las vegas grand prix. Formula 1 Heineken Las Vegas Grand Prix 2026. (2026). https://www.f1lasvegasgp.com/track-layout/
Understanding Channel Dynamics: Vertical, Horizontal, and multichannel systems - agriculture notes by agriculture.institute. Agriculture Institute. (2026, March 18). https://agriculture.institute/marketing-management-for-agribusiness/understanding-channel-dynamics-systems/
Vertical market - oxford reference. Oxford Reference. (2026). https://www.oxfordreference.com/display/10.1093/oi/authority.20110803115547678
Wienclaw, R. A. (2019). Channel Management: Marketing: Research Starters: EBSCO research. EBSCO. https://www.ebsco.com/research-starters/marketing/channel-management#full-article
Zalucki, R. (2026, July 15). LVCVA approves $100M sponsorship deal for Las Vegas Grand Prix through 2037. https://www.fox5vegas.com. https://www.fox5vegas.com/2026/07/15/lvcva-approves-100m-sponsorship-deal-las-vegas-grand-prix-through-2037/
Posted
Categories
License
Copyright (c) 2026 Research Archive of Rising Scholars
This work is licensed under a Creative Commons Attribution 4.0 International License.
