For more than a decade, one name was constant in the world of Formula 1 and that was Rolex. The official timekeeper of F1, Rolex has become unanimous with the sport with its massive clocks ever present during race weekends. However, after 11 long years, this legendary partnership is coming to an end. According to rumors, French luxury brand LVMH is replacing them.
The news of this potential switch entered the F1 rumor mill a few days ago. Now, it’s also being reported by journalist Vincenzo Landino and Coron.et. Both report Rolex’s F1 global partnership and support will end as early as 2025. LVMH will take over the timekeeping duties from the beginning of next season.
According to rumors, they would be paying a whopping $150 million per year to secure the right to become a part of the circus. This would be a massive upgrade from what was believed to be Rolex’s $50 million/year payout to the sport for the same.
⌚️ @Rolex currently pays $50 million per year, so LVMH will be opening the wallet to make this happen.@LVMH has a variety of watch brands under their umbrella including @ZenithWatches, @TAGHeuer, and @Hublot, so it will be interesting to see which end up on F1 signage. pic.twitter.com/UA9KJdpT1h
— Vincenzo Landino (@vincenzolandino) July 5, 2024
Rolex couldn’t match LVMH’s massive $93 billion/year revenue stream and offer a larger chunk of money to continue as the timekeepers of F1. This would be a marketing blow for the Swiss luxury watch brand especially with F1’s audience touching an all-time high.
However, it’s still unclear which watch brand in LVMH’s 75-brand umbrella will reap the reward of this new partnership. The French fashion conglomerate has a variety of luxury watch brands in its roster. For reference, Zenith, TAG Heuer, and Hublot among others are all owned by LVMH. However, why are watch brands pouring their money into F1?
A possible reason why watch brands invest millions of dollars in F1 each year
According to WatchPro, the Swiss luxury watch industry has invested half a trillion into F1 in the past 5 years alone. Why the incessant desire to become part of the motorsport industry? Why do watchmakers want one of their timepieces on every driver’s wrist whenever they’re out of the car? It’s all thanks to F1’s monetization of the interest in the sport and its exponential growth.
An estimated 1.5 billion viewers tuned in to catch some Formula 1 racing action at some point in the previous season. That number should be greater in 2024 because of the current level of competition.
For brands, the circus has become an irresistible promotional platform because of this massive global audience. The fact that the sport is also based on timing and requires split-second decisions also adds to the lure.
As a result, many teams also have their dedicated watch sponsors. While LVMH’s Tag Heuer partners with Red Bull, Richard Mille is associated with Ferrari and McLaren. Meanwhile, Mercedes also has IWC Schaffhausen as one of its partners.
After Bernie Ecclestone put F1 on the map with his business acumen and monetized its commercial rights, watchmakers have lined up to invest their money into the sport. It’s been a few years since and the interest in F1 is at its highest. Naturally, so are the costs of becoming synonymous with Formula 1.
