French luxury goods conglomerate LVMH has signed a 10-year sponsorship deal with the organizers of Formula One, which is believed to be worth $1 billion. According to a joint statement issued by both organizations, multiple LVMH-owned brands will be involved in the partnership, which includes Louis Vuitton, Moët Hennessy, and TAG Heuer. The terms of the sponsorship deal have not been revealed.
The deal confirms the rumors that have been doing rounds for the last several months of LVMH Moët Hennessy Louis Vuitton SE replacing Rolex as F1’s primary sponsor. Earlier this year in July, an online magazine named Coronet leaked the news that Rolex was considering withdrawing its decade-long sponsorship deal with F1 by the end of this season. The iconic Swiss watch brand has been the timekeeping sponsor of F1 since 2013.
“In motorsport as in fashion, watchmaking or wines and spirits, every detail counts on the path to success,” Bernard Arnault said. “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.”
Arnault pointed out that several LVMH-owned brands have been involved in F1 racing since it started in 1950. However, one particular brand that will benefit the most from this deal is TAG Heuer. The watch brand’s association with car racing began in the 1950s. It also has a well-established relationship with F1 thanks to its alliance with the Monaco Grand Prix and its long-term partnership with Red Bull Racing.
“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,” said Greg Maffei, president and CEO of Liberty Media. “The opportunity to scale our commercial arrangements is emblematic of the vision we have for Formula 1 as the business continues to grow its platform. We look forward to working with Bernard and Frédéric Arnault in the years to come.”
