LVMH and the organisers of the Formula One races have signed a major sponsorship deal potentially worth $US1 billion ($1.46b), with the luxury goods group taking over from Rolex.
The French giant will start sponsoring races from 2025, with brands including Louis Vuitton, Moet Hennessy and TAG Heuer all involved, according to a statement issued overnight.
The 10-year deal confirms a report last month by Bloomberg News of an imminent deal between both parties.
The deal is a blow to Rolex, the top Swiss watch brand that has been the timekeeping sponsor of Formula One since 2013, and marks LVMH’s bid to capture the boom in sports investment and viewership.
LVMH was a major sponsor for the Olympic and Paralympic Games in Paris, providing financial support worth $US166 million.
Its brands featured prominently throughout the competitions.
LVMH’s Louis Vuitton and jewellery brand Tiffany regularly feature in global sporting events, notably with the trunk cases at the FIFA World Cup or trophies for the NFL.
Louis Vuitton in particular has run famous ad campaigns with soccer players Cristiano Ronaldo and Lionel Messi as well as tennis greats Rafael Nadal and Roger Federer.
The targeting of Formula One by LVMH follows a resurgence in interest in the motorsport in recent years, driven by an expansion in race venues and the Netflix series Formula 1: Drive To Survive.
Rolex has served as the official timekeeping sponsor of Formula One since 2013, with its signature green and gold adverts becoming commonplace at tracks.
The loss of the sponsorship deal is a setback for the world’s most successful watch brand that has become closely associated with the top tier of motor racing and also sponsors tennis and equestrian events.
Bloomberg.
https://thewest.com.au/business/retail/lvmh-overtakes-rolex-as-top-formula-one-sponsor-in-14-billion-deal–c-16262467
