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Editorial: LVMH and Rolex Vying for Formula 1
Rumours started earlier this month that Rolex had “lost” its prime status as official timekeeper for Formula 1 to TAG Heuer. That, as it turns out, is not true – yet. According to a senior LVMH executive speaking off the record, a deal between F1 and the French luxury group – and not just one of its constituent brands – is close but not yet a done deal. This was also echoed by Jean-Jacques Guiony, LVMH chief financial officer, during a conference call with analysts to present the group’s second quarter financial results. In fact, any announcement of LVMH closing the deal will likely come after the Paris 2024 Olympics that counts LVMH as one of its lead sponsors. The situation is more than just Rolex “losing” the sponsorship to TAG Heuer. It’s not about the financial resources of Rolex, which for all intents and purposes are limitless, but about the breadth and depth of the LVMH portfolio, as well as Rolex’s growing emphasis on conservation as a key part of its brand. Three elements are crucial in understanding the sponsorship deal with F1, which is enjoying a revival in popularity with its hit Netflix series Formula 1: Drive to Survive and new race locations like the Miami Grand Prix. The first is the matching clause that is common in such deals and will inevitably be part of the F1 sponsorship contract. This gives Rolex a matching right – it has the right to match a competing offer for the same sponsorship. In other words, if Rolex wanted to, it can...
