In the world of luxury watches, a shakeup could be on the horizon. A Swiss watch brand owned by French luxury giant LVMH is in discussions to take over one of the most prestigious and expensive sponsorships in sports—the official timekeeping role for Formula 1.
For the past decade, Rolex has been the face of timekeeping at Formula 1 races, with its iconic green and gold branding visible at tracks around the world. The sport has seen a massive surge in popularity during this time, thanks in part to the Netflix series “Formula 1: Drive to Survive,” which has brought F1 to a broader global audience.
But now, Tag Heuer, a smaller but well-respected Swiss watch brand under the LVMH umbrella, is in talks to take over the coveted sponsorship. LVMH’s Chief Financial Officer, Jean-Jacques Guiony, confirmed the discussions during a recent conference call following the company’s second-quarter financial results.
“There are some discussions, but it’s not something I can elaborate on,” Guiony said, adding that nothing has been finalized yet.
Rolex, typically tight-lipped, declined to comment on the matter, and Formula 1 representatives have not yet responded to requests for information.
These talks highlight LVMH’s ambitions for its watch division, which includes not only Tag Heuer but also brands like Hublot and Zenith. Despite the prestige of these names, LVMH’s watch unit still lags behind industry leaders like Rolex, as well as competitors owned by Richemont and Swatch Group AG, when it comes to market share.
The news was first reported by Coronet, an online blog focused on Rolex news. According to Coronet, Rolex currently pays “tens of millions of dollars” annually for the Formula 1 sponsorship. If LVMH takes over, the new deal could reportedly be worth $150 million per year.
These discussions come at a challenging time for the Swiss watch industry, which is experiencing a downturn in demand and sales. Additionally, LVMH’s watch division has seen some executive changes, with Antoine Pin set to take over as CEO of Tag Heuer. This follows Julien Tornare’s departure from the role after less than a year, as he moves on to become the CEO of Hublot.
The potential shift in Formula 1’s official timekeeping sponsor would not only be a significant move for LVMH but also a bold statement of intent in a competitive luxury watch market. It’s a space where tradition meets innovation, and where the stakes are always high.