LVMH will appear as a premium sponsor in Formula 1 from 2025 with its leading luxury brands such as Louis Vuitton, Moët Hennessy, and Tag Heuer. The contract, which is set for a ten-year term, includes an annual sponsorship volume of nearly 100 million euros, as reported by company sources. This establishes LVMH as a key player in top-level sports.
The decision to invest in Formula 1 follows LVMH's push to strengthen its position in the sports segment.
The ability to scale our commercial agreements to this extent reflects our vision for the future of Formula 1," said Greg Maffei, President and CEO of Formula 1 owner Liberty Media. "We look forward to working with Bernard and Frédéric Arnault in the coming years.
The agreement was significantly driven by Frédéric Arnault, the second youngest son of LVMH Chairman Bernard Arnault. The 28-year-old, who has been leading LVMH's watch division since the beginning of the year, is a graduate of the renowned French engineering school École Polytechnique and was previously the CEO of the watch brand TAG Heuer.
By entering Formula 1, LVMH deepens its connection to the sports sector after the corporation was already prominently represented at the 2024 Paris Olympics.
However, LVMH also sparked discussions when a several-minute sequence featuring Louis Vuitton luggage was shown during the opening ceremony of the Olympic Games – an advertisement that generated mixed reactions in the previously ad-free zones of the event.
Since the US-based Liberty Media took over Formula 1 for eight billion US dollars in 2017, the racing calendar has expanded to include new glamorous locations like Miami and Las Vegas. The Netflix documentary series "Drive to Survive" has increased interest in the racing series worldwide, particularly among younger and female viewers.
The proportion of female fans in the total audience increased from 32 percent in 2018 to 40 percent today. This has in turn attracted more companies that specifically target female customers, such as the British cosmetics brand Charlotte Tilbury, which announced its first sports sponsorship this year with the F1 Academy.
The latest venture into Formula 1 highlights LVMH's ambitions to strengthen its position in dynamic and modern markets.
The step into motorsport complements the previous strategy of specifically leveraging sports icons and events to promote the recognition and exclusivity of the LVMH brands.
