LVMH seals Landmark $1 Billion deal with Formula 1

Formula 1's commercial appeal has reached new heights with the announcement of a groundbreaking 10-year partnership with luxury goods conglomerate LVMH.

The deal, set to commence from the 2025 season, is reportedly valued at an eye-watering $1 billion, marking a significant milestone in F1's ongoing efforts to expand its global reach and enhance fan experiences.

A new era of Luxury in F1

The partnership will see a host of LVMH's prestigious brands, including Louis Vuitton and Moët & Chandon, gain prominent visibility across the F1 grid.

This move builds upon the existing relationship between F1 and LVMH, which was strengthened during the 2023 Las Vegas Grand Prix where Moët Hennessy played a pivotal sponsorship role.

Liberty Media's president Greg Maffei emphasized the synergy between the two entities, stating,

"LVMH and Formula 1 are two global brands that consistently push the boundaries of creativity and innovation, values core to Liberty Media."

He added,

"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."

Reshaping timekeeping and podium celebrations

One of the most notable changes stemming from this partnership is the replacement of Rolex as F1's official timekeeping partner.

TAG Heuer, an LVMH brand, will take over this prestigious role, ending Rolex's 12-year association with the sport.

However, this transition will not affect TAG Heuer's ongoing agreements with Red Bull Racing or the Monaco Grand Prix.

Moët & Chandon, which previously featured in F1 podium celebrations, is expected to make a triumphant return as part of this new deal.

The iconic champagne spray, a staple of F1 victory rituals, may once again become synonymous with the LVMH brand.

A strategic move for both parties

F1 President Stefano Domenicali hailed the partnership as a "landmark" agreement, highlighting the shared values of excellence between F1 and LVMH.

"Our sport is founded on the relentless pursuit of excellence, a value that also lies at the heart of LVMH,"

Domenicali remarked.

"As Formula 1 continues its global growth, attracting new and more diverse audiences, the strength and breadth of LVMH makes it the perfect partner for us."

For LVMH, this deal represents a significant expansion of its sports portfolio, which already includes partnerships with the Olympics, Paralympics, Premier League, FIFA World Cup, and NFL.

Bernard Arnault, Chairman and CEO of LVMH Group, drew parallels between the two entities:

"In motorsport as in fashion, watchmaking or wines and spirits, every detail counts on the path to success."