French luxury giant LVMH has struck a 10-year sponsorship deal with Formula 1, covering its Louis Vuitton, Moet Hennessy and TAG Heuer brands and replacing long-time sponsor Rolex, the company announced Wednesday.
The sponsorship deal comes into effect in 2025 and marks a fresh push by LVMH into sports. The company, headed by one of the world’s richest men, Bernard Arnault, paid some €150 million ($166 million) to be the premium sponsor of the Paris Olympics.
High-end Swiss watchmaker Rolex had been a partner to Formula 1 since 2013.
Luxury players are increasingly seeking to boost brand exposure with events combining hospitality, travel and entertainment.
At the Paris Olympics, LVMH and other companies broadened the realm of traditional brand sponsorship, taking part in medals ceremonies, for example.
“For many years, several of our Maisons (brands) have also chosen to invest in Formula 1,” said LVMH Watches CEO Frederic Arnault, adding: “We want to further grow this experiential dimension that Formula 1 provides all over the world.”
LVMH did not provide financial details of the deal.
The company’s sponsorship of the Paris Olympics included its jeweler Chaumet, which designed medals for the event, with each containing an original piece of the Eiffel Tower.
Source: CNN
--Agencies
