LVMH has signed a 10-year global partnership with Formula One, with brands such as Louis Vuitton and Tag Heuer involved. The iconic watch manufacturer Rolex is ending a partnership with Formula One, which has been ongoing since 2013.
In a historic move, French luxury conglomerate LVMH has replaced Rolex, by clinching a sponsorship deal with Formula One.
The global partnership which will run for 10 years is estimated to be worth about $1bn (€0.91bn).
LVMH Moët Hennessy Louis Vuitton SE will begin sponsoring races from next year, with a variety of brands involved, such as Moët Hennessy, Louis Vuitton and TAG Heuer. Next year marks Formula One’s 75th anniversary.
This move comes as global motorsports has seen a resurgence in popularity over the last few years, with more race locations being added. Online content, such as the movie Gran Turismo, the Netflix series ‘Formula 1: Drive to Survive’ and sports documentaries such as Schumacher have also contributed to this increase in popularity.
LVMH is certainly no stranger to sports sponsorships either, having regularly collaborated with the NFL and the Fifa World Cup, while also having worked with the Paralympic and Olympic Games in Paris this year.
Not only that, but LVMH has also worked closely with sportsmen such as Rafael Nadal, Cristiano Ronaldo, Roger Federer and Lionel Messi.
It has also supported and collaborated with paralympic athletes such as Pauline Déroulède, Timothée Adolphe and Marie Patouillet.
This new partnership means that Rolex’s long-standing deal with Formula One has come to an end. It has been the official timekeeping sponsor for the races since 2013.
This could turn out to be a significant blow for the watch company which is already seeing falling prices and decreasing market share as the global luxury market suffers.
Regarding LVMH and Formula One’s partnership, Bernard Arnault, chairman and chief executive officer (CEO) of LVMH Group, said in a statement: “The people, the quest for excellence and the passion for innovation are at the heart of the activity of our Maisons and Formula 1. 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.”
Stefano Domenicali, president and CEO of Formula 1, also said: “Our sport is founded on the relentless pursuit of excellence, a value that also lies at the heart of LVMH, so I am delighted to announce this historic partnership will begin in 2025.”
LVMH sells Off-White as demand for streetwear drops
LVMH also recently made headlines by selling the Off-White streetwear brand to Bluestar Alliance, a brand management company based in New York.
The pioneering late designer Virgil Abloh, who passed away in 2021, had started the Off-White brand.
Bluestar Alliance also owns other fashion companies such as Nanette Lepore, Brookstone, English Laundry, Joan Vass and Kensie.
This decision comes at a time when demand for streetwear has been steadily falling, with the wider slowdown in the luxury goods industry further exacerbating this trend.
LVMH has also shared that it would be focusing more on diversifying its audience and catering more to newer trends demanded by younger demographics, such as combining formalwear with sneakers.
At present, the terms and other details of the deal have not been revealed yet.
