According to reporting by Bloomberg, the two organisations are in ‘late-stage talks’ to finalise a deal that will see the French luxury conglomerate’s brands promoted on significant tracks around the world.
The potential agreement has been estimated to be valued at around $USD150 million ($AUD223 million) per year.
“The talks are ongoing, and a final agreement has not been reached, said the people, who spoke on condition of anonymity because the discussions are private,” the report states.
“The French conglomerate’s numerous luxury brands are giving it an advantage in negotiating a potential multi-brand agreement with F1 over Rolex, which only produces watches, the people said.”
It continued: “If agreed, a deal with LVMH could be announced before the end of the year and the F1 season.”
Should LVMH secure the contract, it would end an 11-year agreement between Rolex and Formula 1. According to Forbes, Rolex pays an estimated $USD50 million ($AUD74 million) annually as the official timekeeper.
LVMH was a major sponsor of the 2024 Olympic Games in Paris earlier this year.
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