Luxury conglomerate LVMH nears F1 sponsorship deal

Agreement would see French company promote its major brands on race tracks

The deal could see LVMH's Tag Heuer watch brand replace Rolex as the timekeeping sponsor for the sport. 

LVMH is in late stage talks to become a major sponsor of Formula One, in a deal that would see the French luxury conglomerate promote its major brands on the race track.

The Paris-based company is nearing an agreement where watchmaker Tag Heuer as well as other brands, which could include Moet & Chandon Champagne and possibly its hotel chains, become sponsors of F1 with brand logos and products displayed prominently to race viewers, sources say.

The potential agreement could be worth a reported $150m (€136m) annually, and would be a blow to Rolex, the top Swiss watch brand that has been the timekeeping sponsor of F1 since 2013.

The talks are ongoing and a final agreement has not been reached, said the sources.

Representatives for Formula One and Rolex declined to comment. LVMH representatives didn’t immediately reply when asked to comment.

Global platform

The potential deal with F1 would provide a broad global platform for several LVMH brands, furthering the business and marketing ambitions of company founder and controlling shareholder Bernard Arnault who has built the world’s biggest luxury company through a series of acquisitions.

LVMH’s Louis Vuitton and jewellery brand Tiffany & Co. regularly feature in global sporting events.

LVMH was a major sponsor for the Olympic and Paralympic Games held in Paris over the summer, providing financial support worth €150m. 

Celine Dion wore a Christian Dior white silk gown when she sang from the Eiffel tower during the Olympics opening ceremony. 

The French conglomerate’s numerous luxury brands are giving it an advantage in negotiating a potential multi-brand agreement with F1 over Rolex which only produces watches, the people said.

If agreed, a deal with LVMH could be announced before the end of the year and the F1 season. 

Bloomberg