e 10-year partnership are expected to be disclosed early next year. However, Reuters reported the value of the deal at more than US$100 million per season.  Several brands enjoying the billion-dollar deal include Moet & Chandon champagne, which will replace Italian wine company Ferrari Trento, and LVMH’s watch brand Tag Heuer, which is preparing to take over from Rolex as Formula 1’s official timekeeper sponsor, ending Rolex’s decade-long reign in this role. This is not LVMH’s first tie-up with Formula 1. Since 2021, Louis Vuitton has supplied trophy cases for the Monaco Grand Prix. Tag Heuer is already involved as a Formula 1 sponsor with Red Bull Racing.  “LVMH has a unique opportunity to attract new customer segments through this deal,” said Matthias Weiskopf, principal consultant at Luxe/Link with more than a decade of experience in the luxury automotive industry. “From next year, the LVMH brands will have a great media presence beyond individual races or race teams.” He also added Formula 1 has a growing global fan base, particularly in the US and Asia, which includes affluent, younger and female demographics who may not yet fully engage with traditional luxury brands. Formula 1 has experienced a significant increase in popularity, primarily attributed to the success of Netflix’s documentary series ‘Drive to Survive’ which premiered in 2019. The six-season series provides viewers with an insightful look into the inner workings of Formula 1 teams and drivers. According to Formula One Group’s owner Liberty Media, the sport achieved about 1.5 billion television viewers last year. In addition to the number of viewers, the sport’s attendance number also reached its peak of 6.16 million last year.  Weiskopf said this partnership enhances Formula 1’s premium appeal, helping it maintain and grow its influence among affluent audiences and luxury enthusiasts worldwide, especially as it continues its expansion into new markets.  Marketing point of view Marie Driscoll, a chartered financial analyst and a professor at Parsons, The New School and the Fashion Institute of Technology, said LVMH’s recent sponsorship of the Paris Olympics is palpable proof of the power of sports to drive and enhance luxury brand awareness.  “Luxury brands are looking for new strategies that are content dependent, such as Kering’s majority stake in Hollywood’s talent agency Creative Artists Agency,” said Driscoll. “In sum, there are similarities to the business strategies and LVMH has the opportunity to drive brand awareness and attract new clients for multiple maisons in its portfolio due to this partnership.” Meanwhile, Weiskopf said Formula 1 offers unparalleled visibility, especially to high-net-worth individuals who appreciate craftsmanship and cutting-edge technology. This partnership reflects LVMH’s broader approach of associating its maisons with prestigious events enhancing their premium positioning and appeal among discerning customers. The partnership is also expected to set a trend for other luxury conglomerates, inspiring them to explore sports sponsorships more aggressively.  “The success of Formula 1, particularly through its global reach and growing popularity, could encourage competitors like Kering or Richemont to explore partnerships in high-profile sports, especially those that cater to affluent demographics. This could expand their visibility beyond traditional fashion or lifestyle events,” Weiskopf said.  Melissa Minkow, director of retail strategy at CI&T, said there’s more room for retail to become involved with the sport.  “We’ve seen the retail and sports connection time and again, so the growth Formula 1 has seen was inevitable in terms of transferring to the retail space. However, there is a uniquely escapist nature to Formula 1 from an entertainment perspective because of its expensive destination venues. The destination component ties really well into experiential retail concepts.”