Formula One bags LVMH as new top sponsor
That victorious F1 drivers currently spray Italian spumante over each other rather than actual champagne has been something of a running joke. Made with Chardonnay grapes grown in the Italian Alps, Ferrari Trentodoc may have a very motorsport name, but still lacks a certain je ne sais quoi on the podium.
That looks set to change after F1 signed up French luxury behemoth LVMH as a new global partner from next year. The 10-year deal is worth more than $1bn, and will involve several of the company’s high-end brands, which include fashion labels Louis Vuitton and Dior, jewellery brand Tiffany & Co, and Benefit Cosmetics. LVMH will become F1’s top sponsor by annual spend.
The most obvious starting point will be for LVHM’s Tag Heuer brand to replace Rolex as F1’s timepiece partner. Rolex has been tied to F1 since 2013, but its 11-year deal is about to run out. Tag Heuer has long fostered links to F1 through individual sponsorships, such as with drivers Max Verstappen, Daniel Ricciardo, Lewis Hamilton and even the late Ayrton Senna.
As for French bubbles, LVMH has plenty of options to pick from, including Dom Pérignon, Moët & Chandon, Veuve Clicquot and Ruinart. Which one LVMH executives go for may tell us more about who they see as the F1/LVMH crossover audience.
LVMH’s foray into motorsport has long been in the works, but its firm commitment to F1 comes hot on the heels of its lauded debut at the Paris 2024 Olympics.
For F1, landing such a big sponsor is evidence that it is still reaping the financial rewards of the growing US and female fan base brought to the sport by Netflix show Drive to Survive. According to earnings from F1 owner Liberty Media, sponsorship accounted for 18 per cent of the sport’s revenue in 2023, so around $580mn; this deal suggests there is still plenty of room for growth.
More broadly for sport, it offers hope to those who believe that big brand sponsorships can help pick up some of the slack as the media rights boom tapers off.