Rumours of a potential sponsorship emerged recently, and chief financial officer Jean-Jacques Guiony addressed the matter directly in an earnings call.
“I won’t comment on Formula 1. I mean, there are some discussions, but it’s not something I can elaborate on as we speak — nothing is decided," he said.
"Obviously, the press knows much more than I do. It’s normal. I’m just a CFO. I cannot really comment.”
Speculation spread when Coronet, a blog dedicated to Rolex news, stated that ‘sources in Geneva’ revealed that LVMH will be the new official timekeeper as of 2025. The annual contract is estimated to cost around $USD150 million.
Should LVMH secure the contract, it would mark a surprise end to an 11-year agreement between Rolex and Formula 1. According to Forbes, Rolex pays an estimated $USD50 million annually to be the official timepiece of the motor racing series.
“TAG Heuer’s connection to Formula 1 runs even deeper. Heuer, as it was then known, was the first watchmaker to sponsor the F1 some 74 years ago,” writes Rachel Cormack of Robb Report.
“During the inaugural championship race in 1950, the teams used Heuer’s mechanical stopwatches to time laps. The brand’s highly reliable timing technology soon became a staple in motorsport. In 1971, Enzo Ferrari enlisted Heuer to design a new timing system for the Prancing Horse. In return, the racing magnate added the watchmaker’s logo to Ferrari’s cars and uniforms.”
She added: “Today, TAG Heuer is the official timekeeper and partner of the Oracle Red Bull Racing team, but if the rumoured deal goes ahead, it could have an even bigger presence on the circuits.”
In July of the past year, LVMH was named a major sponsor of the Olympic Games in Paris.
More reading
Drive to survive: Will LVMH oust Rolex?
LVMH boss owns stake in luxury rival Richemont
Ana de Armas showcases new collection from Louis Vuitton
Kings of luxury: New research highlights Pandora's dominance
Rolex hit with staggering fine by competition authority
Watch industry insights: Back to the future