Formula 1 has struck a historic deal with French luxury goods giant LVMH. The deal covers its Louis Vuitton, Moet Hennessy and TAG Heuer brands, replacing long-time sponsor Rolex.
LVMH Becomes Formula 1’s Global Partner
The sponsorship deal is valued at slightly more than $100 million a year for 10 years and comes into effect in 2025. The historical agreement marks a fresh push by LVMH into the sports world. Most recently, LVMH splurged nearly 150 million euros ($165.77 million) to be the premium sponsor of the Paris Olympics.
LVMH, owned by one of world’s richest people Bernard Arnault, replaces Swiss luxury watchmaker Rolex which had been the global partner to Formula 1 since 2013.
Luxury providers have been increasingly seeking to boost brand exposure with events pertaining to sports, hospitality, travel and entertainment.
At the Paris Olympics, LVMH and other companies broadened the realm of traditional brand sponsorship, taking part in medals ceremonies.
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“The people, the quest for excellence and the passion for innovation are at the heart of the activity of our Maisons and Formula 1,” Arnault said.
“In motorsport as in fashion, watchmaking or wines and spirits, every detail counts on the path to success.
“Both in our workshops and on circuits around the world, it is this incessant search to break boundaries that inspires our vision, and this is the meaning that we want to bring to this great and unique partnership between Formula 1 and our Group.”
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LVMH, joins Formula 1’s other main sponsors like DHL, Heineken, MSC Croisieres, Pirelli and Qatar Airways.
The deal will come into force next season when F1 celebrates its 75th anniversary.
Greg Maffei, boss of F1’s owners Liberty Media, said, “LVMH and Formula 1 are two global brands that consistently push the boundaries of creativity and innovation, values core to Liberty Media.
“We were thrilled to work with one of the LVMH Maisons during the Las Vegas Grand Prix last year, and to now expand our relationship with the Group as they become a Global Partner.”
Since Liberty Media acquired Formula 1 in 2017, the popular auto racing competition has become one of the world’s most popular annual sporting series. It has gone on to become a highly profitable business.
According to Liberty Media’s Q2 earnings report for 2024, Formula 1 generated nearly $988 million in total revenue, a 36.5% growth from the previous year.
Also Read: Amazing Formula 1 Facts That You Probably Didn’t Know
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LVMH is a French luxury group that owns several high-end brands in various sectors, including wines and spirits, fashion and leather goods, perfumes and cosmetics, watches and jewelry, and select retailing. Some of its popular labels include popular names like Louis Vuitton, Tag Heuer, Tiffany & Co., Moët & Chandon.
From 1966 to 1999, and then again in 2020, LVMH’s Champagne brand Moët & Chandon served as the official sponsor for Formula 1 until it eventually got replaced by brands like G.H. Mumm (PDRDF) , Chandon, Champagne Carbon, and the most recent Ferrari Trento.
