LVMH to Partner with Formula 1 in Decade-Long Deal Starting 2025
LVMH Moët Hennessy Louis Vuitton, the French luxury conglomerate, has inked a 10-year partnership with Formula 1, commencing with the 2025 season at the Melbourne Grand Prix. While financial terms remain undisclosed, insider sources estimate the deal to be worth just under $100 million annually. This agreement marks the end of Rolex’s tenure as the global partner and official timepiece, a role it has held since 2013.
The partnership aligns with a trend of luxury brands increasing their involvement in Formula 1, driven by the sport’s growing popularity among younger audiences, largely fueled by the hit Netflix series Drive to Survive.
Bernard Arnault, chairman and CEO of LVMH, highlighted the shared values between the two entities, emphasizing excellence, innovation, and a focus on people. He remarked that attention to detail is crucial for success in both motorsports and fashion, and these principles form the foundation of the collaboration between Formula 1 and LVMH.
Liberty Media president and CEO Greg Maffei expressed excitement about the partnership, seeing it as a step forward in scaling Formula 1’s commercial operations. Stefano Domenicali, president and CEO of Formula 1, called the deal a landmark agreement for both organizations.
In 2023, Formula 1 attracted a global TV audience of 1.5 billion and 6 million race attendees across 24 races. Frédéric Arnault, CEO of LVMH Watches, praised Formula 1 for embodying key values such as innovation, teamwork, and performance, which align with LVMH’s ethos. He noted that the longstanding history between LVMH and Formula 1 fueled the decision to commit to this decade-long partnership.
Several LVMH brands, including Louis Vuitton, Tag Heuer, and Moët & Chandon, are expected to play a significant role during racing weekends around the world. The partnership will extend to Formula 1’s 75th anniversary celebration in February, with potential involvement from LVMH’s Moët Hennessy wine and spirits brands. Previous partnerships are not expected to be affected by the new collaboration.
Tag Heuer, which previously served as Formula 1’s official timekeeper from 1992 to 2003, has a long history in motorsports, having partnered with teams like Scuderia Ferrari, McLaren, and Oracle Red Bull Racing. Moët & Chandon, too, has a storied connection with Formula 1, having celebrated victories with champagne since the sport’s inception in 1950.
LVMH’s engagement with Formula 1 also reflects its growing focus on sustainability. Frédéric Arnault emphasized that discussions about Formula 1’s carbon neutrality goal by 2030 were central to their partnership talks.
This new partnership follows LVMH’s sponsorship of the 2024 Paris Olympic and Paralympic Games. Despite a dip in net profit in the first half of 2024 due to increased sponsorship expenditures, LVMH remains committed to strengthening its presence in the global sports arena.