F1 inks a 10-year global sponsorship deal with LVMH

Investing.com -- Liberty Media's Formula One and luxury group LVMH Moet Hennessy Louis Vuitton SE (EPA:LVMH ) announced Wednesday they are entering a 10-year partnership.

The partnership, set to begin with the next F1 season, will feature “hospitality, bespoke activations, limited editions and outstanding content.”

This marks a new official collaboration, though F1 previously worked with one of LVMH’s brands during last year’s Las Vegas Grand Prix, a successful venture according to Liberty Media's president and CEO, Greg Maffei.

“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,” Maffei said. “We look forward to working with Bernard and Frédéric Arnault in the years to come.”

LVMH, which owns brands like Louis Vuitton, Moet Hennessy, and TAG Heuer, will integrate these brands into the partnership. While financial details were not provided, more information about the partnership will be shared in 2025.

Liberty Media Formula One Corp A (NASDAQ:FWONA ), which acquired Formula One in 2017, has significantly boosted the sport's growth in recent years.

Commenting on the news, analysts at Rosenblatt said the partnership “is consistent with our sense in recent interactions that F1 sponsorship is really ramping, supportive of our constructive stance.”

“We will be very interested to hear about what MotoGP (which Liberty has agreed to acquire) could do with sponsorship when we host MotoGP Chief Commercial Officer Dan Rossomondo in a fireside chat at AWNewYork next week.”

The deal between F1 and LVMH was spearheaded by Frédéric Arnault, the second-youngest child of LVMH founder and CEO Bernard Arnault.

Frédéric, who took over as head of LVMH’s watchmaking division earlier this year, previously served as CEO of Tag Heuer. Like his father, he is a graduate of France’s prestigious engineering school, École Polytechnique.

Luxury brands have increasingly turned to sports to broaden their reach and appeal. While luxury has traditionally been linked to high-end sports like show jumping and tennis, there is now a growing association with more popular sports such as basketball and football.

Earlier this year, LVMH launched a Louis Vuitton campaign featuring tennis icons Roger Federer and Rafael Nadal hiking in the Italian Dolomites, a follow-up to their 2022 ad showcasing football stars Cristiano Ronaldo and Lionel Messi playing chess.

Source: Investing.com