Is Out- And LVMH Is In For 10 Years With Formula 1

May 20, 2014

Its been a rumor for quite a while, so the fact that is out and LVMH is in as of next year didnt come as a surprise. Maybe the length of the firm 10-year contract is. In addition, LVMH won t promote just the historically correct watch brand TAG Heuer through Formula 1 but also many other luxury maisons under the groups umbrella.You might have read about losing its Formula 1 sponsorship role before here on Fratello. The article was based on very strong rumors and reliable inside information. Well, it proved more than a strong rumor. Its official now: s partnership ends this year, and as of 2025, LVMH will be Formula 1 s Global Partner for the next decade. The interesting part of the deal is the title of Official Partner. Thats a bigger title than Official Timekeeper. Its a US$150 million title that gives LVMH more chances to show itself than a US$50 million deal, which made the partner that kept track of the time. is out, and LVMH is in - Get ready for a plethora of LVMH brands around the race trackWhen you pay a rumored US$150 million per year for the next decade and have a wide range of luxury brands in your portfolio, why not show them all to the audience? LVMH doesnt just own TAG Heuer, a historical and high-profile name in Formula 1 and the Official Timekeeper of constructor Red Bull Racing. No, LVMH also owns many other luxury brands, including a few watchmaking and many non-watchmaking houses. Its all in name, so it isnt hard to imagine seeing the brands Louis Vuitton (fashion), Mo?t & Chandon (champagne), and Hennessy (cognac) make an appearance on the F1 stage - alcohol-free bubbles and brandy, for sure.TAG Heuer Carrera Glassbox Panda 39LVMH: the bridge builderIn an LVMH press release, it reads, The unprecedented agreement between the world leader in luxury and the pinnacle of motorsport will launch at the beginning of next season at a time of incredible ongoing popularity, cultural relevance, and overall excitement for Formula 1 as a bridge between global sport and entertainment.LVMH wants to connect with the Drive to Survive audience. The popular Netflix docudrama series reaches an audience that knows and values brands like TAG Heuer, Dior, Louis Vuitton, Mo?t & Chandon, Hennessy, Fendi, Tiffany & Co., etc. Please remember that LVMH controls around 60 subsidiaries, which manage a total of 75 luxury brands that are part of LVMHs six branches - Fashion Group, Wines and Spirits, Perfumes and Cosmetics, Watches and Jewelry, Selective Distribution, and Other Activities.The TAG Heuer Monaco in a 39mm titanium case and new green colorwayTAG Heuer will likely replace as a timekeeper, but this still leaves plenty of room for many other LVMH maisons to make a prominent appearance. The idea to take over from seems to be a strategic plan conceived by Frederic Arnault, the former CEO of TAG Heuer, who became CEO of the newly created LVMH Watches division this year. But since LVMH is a family-operated conglomerate, the other family members in decision-making positions were also involved.Frederic Arnault told?WatchPro?last year, When I joined, Formula 1 motorsport was no longer at the core of TAG Heuers strategy. There was criticism of it being an old mans sport; it had a huge issue to tackle around sustainability. But now the picture is very different.TAG Heuer Carrera Extreme Sport CollectionIts all about the money, the drama, and the showWhen/if you see a Dior advertisement next year while watching a Grand Prix, it will be because Delphine Arnault - sister of Frederic, daughter of Bernard, director and executive vice-president at Louis Vuitton, and chairman and CEO of Dior - also sees the value in showing the brand to an audience that no longer consists of predominantly die-hard race fans.The success of the Netflix series?Drive to Survive and the many social media channels managed by influencers and F1 teams themselves show that the sport is not just about the race weekends but also the lavish lifestyle, the stories of the drivers, the backstage battle between the teams, the big money, and the manic mayhem. In the same WatchPro interview, Frederic Arnault said, A lot of our investment was going into other sports and entertainment partnerships. We decided to concentrate our investment into motorsports, particularly Formula 1.Formula 1 Mario KartGet ready for a new Formula 1 eraThe official LVMH statement reveals that people inside Formula 1 and fans and followers of the worlds fastest circus must prepare for the prominent presence of various LVMH logos and products. At the crossroads of the LVMH Groups values of creativity and excellence with Formula 1s innovation and high performance, the partnership will bring together the best of these two worlds and provide unparalleled experiences combining thrilling sport and elegant art-de-vivre, wheel-to-wheel racing and time-tested craftsmanship, for enthusiasts, fans, and clients, the groups statement says.Hublot Big Bang Unico Dark Green CeramicNow we must prepare to see Formula 1 drivers wear Fendi sunglasses, Dior race overalls, and Berluti race shoes, sip zero-alcohol Hennessy instead of energy drinks, wear TAG Heuer watches on their left and either a Zenith, Bvlgari, or Hublot on their right wrists, and spray themselves with Guerlain after races to camouflage the stench of sweat… Relax; Im only joking. Teams and drivers have separate sponsorship deals, but how much longer will those last? Zenith Chronomaster Sport in gold with diamonds Bvlgari Aluminum Chronograph You will also see the return of easier pitlane access and the glamour lost under sponsorship. LVMH and its teams will share their exceptional savoir-faire and entrepreneurial spirit with the world of Formula 1 through hospitality, bespoke activations, limited editions, and outstanding content.Photograph by Vladimir RysParty timeYou might remember the days of F1 playboy James Hunt; if you dont, you might have seen the biopic on his glamorous life. This is what comes to mind when reading LVMHs statement. What also comes to mind is the exorbitant prices people must pay to attend and enjoy races trackside. The party LVMH is going to throw for the next decade may be the biggest fest in F1 history, but it might be an even more exclusive get-together than ever before.Let me leave you with the words of Bernard Arnault, chairman and CEO of LVMH: The people, the quest for excellence, and the passion for innovation are at the heart of the activity of our Maisons and Formula 1. In motorsport, fashion, watchmaking, or wine and spirits, every detail counts on the path to success. In our workshops and on circuits around the world, this incessant search to break boundaries inspires our vision, and this is the meaning that we want to bring to this great and unique partnership between Formula 1 and our Group.You will have to wait until early 2025 to determine what the partnership between Formula 1 and LVMH will look like. But in the meantime, please share your ideas in the comments below. Are you a die-hard motorsports fan who thinks the lifestyle and entertainment factors are becoming too dominant? Or do you think Formula 1 is already a reality show, and you cant wait for it to become even more entertaining in all kinds of ways?