F1 signs 10-year global sponsorship deal with LVMH By Investing.com

Investing.com — Liberty Media’s Formula 1 and luxury group LVMH Moet Hennessy Louis Vuitton SE (EPA: ) announced Wednesday that they are entering into a 10-year partnership.

The partnership, which will start with the next F1 season, will include “hospitality, personalized activations, limited editions and outstanding content”.

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

“The opportunity to expand our commercial arrangements is emblematic of the vision we have for Formula 1 as the business continues to develop its platform,” Maffei said. “We look forward to working with Bernard and Frédéric Arnault for years to come.”

LVMH, which owns brands such as Louis Vuitton, Moet Hennessy and TAG Heuer, will integrate these brands into the partnership. Although no financial details were provided, more information about the partnership will be shared in 2025.

Liberty Media Formula One Corp A (NASDAQ: ), which acquired Formula 1 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 from recent interactions that F1 sponsorship is indeed growing, supporting our constructive stance.”

“We’ll be very interested to hear what MotoGP (which Liberty has agreed to acquire) could do with the sponsorship when we host MotoGP commercial director Dan Rossomondo in a fireside chat at AWNewYork next week .”

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

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

Luxury brands have increasingly turned to sports to broaden their reach and appeal. While luxury has traditionally been associated with high-end sports such as 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 featuring soccer stars Cristiano Ronaldo and Lionel Messi playing chess.