A luxury conglomerate boasting world renowned names, sought after brands and a global appeal announced a landmark partnership on Wednesday evening – as they agreed a deal with LVMH.
Formula 1 has once again become the height of luxury; a company, a sport and a brand that is soaring amid levels of popularity that has sponsors queuing up to get on board and pay millions of dollars a year for the privilege.
That could stretch to $1billion across the decade-long partnership agreement struck with LVMH, whose ‘Maisons’ include champagne brand Moet, luxury watch maker TAG Heuer and fashion brand Louis Vuitton.
Now those products will call F1 home – as Bernard Arnault chairman of the LVMH Group said following the announcement: “The people, the quest for excellence and the passion for innovation are at the heart of the activity of our Maisons and Formula 1.”
The deal will start from the 2025 season and includes LVMH brands becoming involved in hospitality, activations and limited editions, adding to the presence the company already has within F1.
For Moet, see Ayton Senna flying off the start line like a popped cork, the precision timing of a TAG Heuer watch matched by Michael Schumacher’s performance while fellow seven-time world champion Lewis Hamilton is a fashion icon to rival Louis Vuitton.
Add to that a healthy dose of Ferrari, a helping of Mercedes and a dash of James Bond’s own Aston Martin and sponsors are stirred rather than shaken about the prospect of getting on board.
The product Liberty Media has created has the biggest and best wanting a slice of the pie and, once they have dipped their toes the majority want to dive right in at the deep end.
LVMH was a sponsor of the Las Vegas Grand Prix last year through their Moet Hennessy brand, which was also a partner of Red Bull Racing and the Monaco Grand Prix – now that has ballooned into a global partnership.
Similarly, Santander will bring to an end years of association with Ferrari this season as the banking giant has signed on as retail banking partner of F1 itself, while Lenovo is also coming on board as a global partner – a deal that includes the title sponsorship of two races – one of which will be the Japanese Grand Prix.
For LVMH though, who already have sponsorship deals with the Premier League, FIFA World Cup, Olympics, Paralympics and the NFL, they have taken the next step in F1 with a partnership that will see their brands across all aspects of a sport that is at the heights where it can command such fees.
As Arnault said: “In motorsport as in fashion, watchmaking or wines and spirits, every detail counts on the path to success.” For F1, that particular path continues to be lined with gold.
