LVMH Could Become a Major Sponsor of Formula 1

LVMH may be about to get the checkered flag from Formula 1.

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The French luxury behemoth is close to clinching a deal to become a major sponsor of the prestigious motor-racing competition, as reported by Bloomberg .

The new agreement, which could be worth $150 million annually, would see LVMH’s respective maisons represented on the race track with branded banners and prominently displayed products. TAG Heuer , one of several Swiss watchmakers owned by the Parisian conglomerate, may unseat Rolex as the official timekeeping sponsor. Champagne brand Moët & Chandon and hotel chains Belmond and Cheval Blanc could also gain a presence at F1 events, according to people familiar with the matter.

The talks are ongoing and an agreement hasn’t been finalized at this stage, added the people. (The sources spoke to Bloomberg on condition of anonymity because the discussions are private.) Robb Report previously contacted Rolex and Formula 1 for comment, but neither replied. LVMH didn’t immediately respond to Robb Report’s request for comment. LVMH chief financial officer Jean-Jacques Guiony has confirmed that the company is in talks with F1, though. “There are some discussions, but it’s not something I can elaborate on,” Guiony said during a conference call with analysts and investors in July. “Nothing is decided.”

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LVMH is no stranger to the sports world. The company, helmed by billionaire Bernard Arnault , paid millions to become a premium partner of the Paris Olympics this year. The company’s maisons were omnipresent at the events in the French capital, too: Chaumet designed the Olympic medals, Louis Vuitton made the trunk for the Olympic torch , and Berluti crafted uniforms for the 1,500 French athletes. In addition, Tiffany & Co., the American jeweler LVMH bought for $15.8 billion in 2020, has created trophies for the NBA , the NFL , and even the F1 Miami Grand Prix . Louis Vuitton has also crafted trophy trunks for the Monaco GP (pictured top), among other notable sporting events.

The number of brands in LVMH’s ever-growing portfolio is reportedly helping win over the folks at F1. The fact that the company is bringing multiple big names to the table is giving it an advantage over Rolex, the people said. That makes all of Arnault’s recent acquisitions seem like strategic genius.

It would make sense that the deal is finalized by the end of the current F1 season. We should expect an announcement in December, then.

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