LVMH to Take F1 Sponsorship from Rolex

In a surprising turn of events, Rolex is set to end its 11-year global sponsorship of Formula One next season. This decision brings an end to an era that began in 2013, during which Rolex served as the official timekeeper of F1, with its iconic branding consistently featured across all racetracks. Rolex has played a pivotal role in the sport's image, investing an estimated $50 million annually for this prestigious position. LVMH will reportedly invest three times that, $150 million annually, in its new deal with F1. 

Image Source: Rolex

The announcement was first reported by Coronet magazine, a niche publication dedicated to Rolex news, which cited sources in Geneva. This move comes at a time when Formula One is experiencing a surge in popularity. Last year, the sport averaged 70 million global viewers per Grand Prix, a significant increase from pre-pandemic numbers. This growth is largely attributed to the success of Netflix's documentary series "Drive to Survive," which has brought the sport into mainstream interest around the world.

Frédéric Arnault, CEO of LVMH Watches and son of LVMH CEO Bernard Arnault standing with TAG-Heuer-sponsored Red Bull Racing Team. Image Source: Business of Fashion

As F1's popularity continues to rise, so does its value to sponsors. This inevitably leads race organizers to seek higher sponsorship revenues. Although Rolex is a leading watch brand globally, it faces stiff competition from luxury conglomerate LVMH, whose group of 75 brands generated a combined revenue of €86.4 billion last year, far surpassing Rolex's $13 billion in 2021.

The big question now is which LVMH brand might step into Rolex's shoes as the new F1 sponsor. TAG Heuer is the obvious choice, given its long-standing association with the sport dating back to 1969. TAG Heuer has a rich racing heritage and recently re-released the much-loved Formula 1 model in collaboration with streetwear brand Kith, further cementing its racing credentials. 

Former CEO of Hublot Jean-Claude Biver standing with Ferrari Racing Team. Image Source: aBlogtoWatch

While TAG Heuer is ostensibly the frontrunner, Hublot is another LVMH watch brand with ties to F1, most notably its past partnership with Ferrari. 

Even if Rolex exits as the F1 sponsor, it may still maintain a connection to the sport through Tudor's sponsorship of Visa Cash App RB and its newly released Ceramic Black Bay "Blue." As of now, neither Rolex nor LVMH has made an official statement regarding these developments.