LVMH Secures $1 Billion Formula 1 Sponsorship, Replaces Rolex

French luxury giant LVMH has secured a 10-year sponsorship deal with Formula 1, covering its brands Louis Vuitton, Moet Hennessy, and TAG Heuer, replacing long-time sponsor Rolex. The deal, valued at over $100 million annually, will start in 2025. LVMH aims to enhance brand exposure through high-profile sports events.

French luxury titan LVMH has clinched a decade-long sponsorship agreement with Formula 1, featuring its prestigious brands Louis Vuitton, Moet Hennessy, and TAG Heuer. This deal ousts long-established sponsor Rolex, the company revealed on Wednesday.

Valued at an annual $100 million for 10 years, the sponsorship kicks off in 2025 and illustrates LVMH's intensified push into the sports domain. Previously, LVMH invested 150 million euros ($165.77 million) to secure premium sponsorship for the Paris Olympics. Rolex had maintained its partnership with Formula 1 since 2013.

Luxury brands are increasingly leveraging high-profile events blending hospitality, travel, and entertainment to elevate brand visibility. For instance, at the Paris Olympics, LVMH extended traditional sponsorship roles by participating in medal ceremonies.

"Several of our Maisons have chosen to invest in Formula 1 for many years," noted LVMH Watches CEO Frederic Arnault. "We aim to further amplify the unparalleled experiences that Formula 1 offers globally." Financial specifics of the deal remain undisclosed.

(With inputs from agencies.)