Von
Bloomberg
Translated by
Aline Bonnefoy
Published on
7. October 2024
LVMH has signed a significant sponsorship deal with the Formula 1 race organizer, with an investment value of up to USD 1 billion. The French luxury goods group replaces Rolex in this role.
Greg Maffei, Bernard Arnault, Stefano Domenicali und Frédéric Arnault – LVMH
LVMH Moët Hennessy Louis Vuitton SE will be one of the most important F1 premium sponsors from 2025. Luxury brands such as Louis Vuitton, Moët Hennessy and TAG Heuer are involved, according to a press release on Wednesday. A month ago, Bloomberg News reported that the two parties were negotiating a joint agreement. This information has now been officially confirmed with the sponsorship agreement.
The 10-year deal could involve over USD 1 billion in investment, plus annual sponsorship amounts of around USD 100 million. People familiar with the negotiations reported this at the request of Bloomberg News.
The agreement is a blow to premium Swiss watch brand Rolex, which has been the official timekeeper of Formula 1 since 2013.
The popularity of Formula 1 has skyrocketed in recent years, thanks to the expansion of race tracks and the Netflix series Formula 1: Drive to Survive.
Last summer, LVMH was one of the main sponsors of the Olympic and Paralympic Games in Paris and supported the major sporting events with around EUR 150 million. The luxury group’s subsidiary brands were omnipresent during the games.
The LVMH subsidiary Louis Vuitton and the jewelry house Tiffany & Co. are regularly represented at global sporting events, for example with the suitcases for the FIFA World Cup and the trophies for the NFL. Louis Vuitton has notably carried out famous advertising campaigns with footballers Cristiano Ronaldo and Lionel Messi, as well as tennis players Rafael Nadal and Roger Federer, photographed by photographer Annie Leibovitz.
The sponsorship agreement was negotiated against the backdrop of declining demand for luxury goods. Shares of LVMH have fallen about 8.9 percent so far this year as concerns remain about buying appetite in the Chinese market.
