What started as a rumor in 2024, became a reality when LVMH (owner of TAG Heuer) announced its official partnership with F1 in October 2024.
Rolex had been the official timekeeper of F1 since 2003, and instead of getting in a bidding war with TAG Heuer, or other potential suitors, it’s presumed Rolex bowed out.
It’s been rumored that Rolex was paying $50 million a year for the prestigious international F1 partnership and that LVMH came in and doubled or tripled that number.
In the official F1 press release by LVMH in October 2024, the luxury conglomerate made it clear that the partnership will include Louis Vuitton, Moët & Chandon, and TAG Heuer. That means that LVMH can cross-promote its TAG Heuer timepieces; its Veuve Cliquot, Ruinart, and Dom Pérignon champagnes; and Louis Vuitton handbags, luggage, apparel, and watches.
This partnership provides a unique ability to globally promote multiple lines within the LVMH product spectrum (as mentioned above), and perhaps, there are plans to promote other LVMH brands as well, such as Zenith, Hublot, Bulgari, L’Epée 1839, Tiffany & Co, and many more.
That breadth of the LVMH line could justify the company taking on such a huge partnership, rumored to total $1 to $1.5 billion over 10 years. However, at such a high cost, it almost has to perform or the cost would exceed the value of the branding and performance marketing results.
It’s all about results, and Rolex (and perhaps others like Omega), presumably saw the investment cost as too high relative to the predicted ROI (return on investment).
IWC, Tudor, Richard Mille, Girard-Perrgaux, Moser, Casio Edifice, and Bremont all have associations with F1, so it’s not like LVMH has an exclusive because each racing team is still allowed to select its sponsors.
TAG Heuer specifically has a watch named after the F1 and has long been associated with the brand, dating back to when the sport was in its purer form, when arguably the greatest racer of all time, Ayrton Senna, competed.
If any company can afford the F1 global partnership, it’s LVMH. However, it’s hard to envision it being enough to propel TAG Heuer to overtake its top competitors, especially considering they dropped to the top 15 Swiss watchmaker spot last year, according to the Morgan Stanley luxury watch report.
