F1’s LVMH Partnership Surpasses Red Bull’s Oracle Deal by $50 Million to Top Sponsorship List

F1 is set to partner with Louis Vuitton (LVMH) from 2025 onwards. However, neither F1 nor LVMH themselves have confirmed the value of their sponsorship deal. Per F1 photojournalist Kym Illman, most major publications have speculated that the French fashion brand will be paying F1 around $100 to $150 million, which could be higher than Red Bull’s Oracle title sponsorship.

Illman highlighted this on his latest YouTube video about LVMH’s tie-up with F1. He mentioned how LVMH had a turnover of $94.5 billion (€86.2 billion) in 2023. Thus, he said, “When it comes to spending $100 to $150 million a year on a sports sponsorship, it’s not a big a deal compared to [their] turnover.”

Formula 1 has today announced that LVMH, the world leader in luxury, will become a Global Partner from 2025 with a historic 10-year agreement#F1 https://t.co/qbFJU5bJPe

— Formula 1 (@F1) October 2, 2024

Illman mentioned how Oracle pays Red Bull around $100 million per year. Meanwhile, Ferrari recently signed a title sponsorship deal with Hewlett-Packard (HP) at $90 million per year. So, LVMH’s reported sponsorship amount surpasses both these deals by around $50 million.

Now, this deal means F1 will end its 12-year association with Rolex as its official time partner. With LVMH coming in 2025, TAG Heuer (whom they own) might take over the time-keeping duties next season.

Besides this, LVMH will have plenty of visibility and signage at all F1 races like Rolex has now. Even sponsorships for certain races like the Australian GP and the Belgian GP will change. Illman stated that TAG Heuer will most likely become the title sponsor of these two races in 2025.

What else will the LVMH sponsorship impact in F1?

The French company has several champagne brands under its umbrella and this could be one of the aspects they would like to capitalize upon by being F1’s official champagne provider. Currently, F1 has the Ferrari Trento champagne for the podium finishers at all races.

LVMH may replace it with one of its champagne brands like Moet & Chandon, Ruinart, and Armand de Brignac. Illman also mentioned that they could also target selling champagnes in F1’s official hospitality sections such as the Paddock Club.

He stated how more than 60,000 bottles of bubbly champagne can be sold in these corporate hospitality and guest hospitality sections. So, this is a big revenue and brand visibility opportunity for LVMH.

The Aussie also predicted that LVMH will naturally look to have fashion collaborations and push F1 and all the teams to use its merchandise and clothing. Being one of the fashion powerhouses, they will threaten the individual team clothing partner brands such as Hugo Boss (RB and Aston Martin’s sponsor) and Tommy Hilfiger (Mercedes’ sponsor).