French luxury giant LVMH has reached a 10-year sponsorship deal with Formula 1 which covers its Louis Vuitton, Moet Hennessy and TAG Heuer brands, replacing long-time sponsor Rolex, the company announced on Wednesday. The sponsorship deal, valued at slightly more than $100-Million a year for 10 years, comes into effect in 2025, marks a fresh push by LVMH into the sports world. LVMH paid some 150 million euros ($165.
77-Million) to be the premium sponsor of the Paris Olympics. High end Swiss watchmaker Rolex had been a partner to the Formula 1 since 2013. Luxury players are increasingly seeking to boost brand exposure with events combining hospitality, travel and entertainment.
At the Paris Olympics, LVMH and other companies broadened the realm of traditional brand sponsorship, taking part in medals ceremonies, for example. Greg Maffei, President and CEO, Liberty Media, said: “LVMH and Formula 1 are two global brands that consistently push the boundaries of creativity and innovation, values core to Liberty Media. 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.
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.” Bernard Arnault, Chairman and CEO, LVMH Group, add.