If France has just received a violent uppercut in F1 on a sporting and technological level, with Renault’s decision to kill its engine program, it is regaining color on the marketing level with the strong comeback of the LVMH group.
Formula 1 today announced that luxury brand group LVMH will become a global partner in 2025, when the sport celebrates its 75th anniversary. Indeed, this new 10-year agreement, which could approach the billion mark, will include several emblematic LVMH houses, including Louis Vuitton, Moët Hennessy and TAG Heuer. After the Paris Olympics, it is therefore a new masterstroke for the French luxury giant, while Liberty Media continues its strategy of promoting the F1 “brand”, ever more glamorous, as evidenced by the latest Miami destinations. and Las Vegas.
Jackpot for F1
F1 has become a big business again in recent years and everyone wants their share of the gigantic pie. In 2023, F1 generated $3.2 billion in revenue, up 25%. Growth, particularly in the USA, is no stranger to this unprecedented boom. A statement from Formula 1 and LVMH describes the deal as an “unprecedented agreement between the global leader in luxury and the pinnacle of motorsport” which will launch next season “at a time of incredible popularity, cultural relevance (sic) and general enthusiasm for Formula 1 as a bridge between global sport and entertainment.
“At the crossroads of the LVMH group’s values of creativity and excellence with the innovation and high performance of Formula 1, this partnership will bring together the best of these two worlds and offer unrivaled experiences combining thrilling sport and an elegant art of living, wheel-to-wheel racing and proven know-how, for enthusiasts, fans and customers.
“Since the birth of Formula 1, in 1950, until today, LVMH and its Houses have always been associated with this sport. With this new partnership, Formula 1 and LVMH are delighted to write new chapters in this incredible story, with each House bringing its unique expertise, heritage and energy to strengthen this collaboration. »
Greg Maffei, president and CEO of Liberty Media, declared, with the usual emphasis of press releases of this type: “LVMH and Formula 1 are two global brands that constantly push the boundaries of creativity and innovation, core values for Liberty Media.” It’s beautiful !
“We were delighted to work with one of the LVMH Houses during the Las Vegas Grand Prix last year, and to now expand our relationship with the Group as it becomes a global partner. The opportunity to evolve our commercial arrangements is emblematic of the vision we have for Formula 1 as the company continues to develop its platform. We look forward to working with Bernard and Frédéric Arnault in the years to come. »
Bernard Arnault, Chairman and CEO of the LVMH group, added: “People, the quest for excellence and the passion for innovation are at the heart of the activity of our Houses and of Formula 1. In motorsport as in fashion, watchmaking or wines and spirits, every detail counts on the path to success.Both in our workshops and on circuits around the world, it is this incessant search to push the limits that inspires our vision, and this is the meaning that we wish to bring to this great and unique partnership between Formula 1 and our Group. »
Champagne will therefore make its return to the podiums, replacing prosecco which has been flowing freely since 2021 with the Ferrari brand (no link). Moët will therefore make its return, after having left the scene in 1997. Perhaps we will be entitled to Vuitton boxes on the catwalks, it’s trendy…As for TAG, it goes without saying that its vocation will be to take the succession of Rolex, whose partnership with F1 is ending. TAG Heuer is a brand that has been involved in F1 for a long time, having been linked to Ferrari in the 1970s then to McLaren from the mid-1980s to 2016, before switching, more discreetly, to Red Bull.
