A Swiss watch brand owned by French luxury conglomerate LVMH is in talks to take over as the official timekeeping sponsor of Formula 1 motor sports racing, one of the most high-profile and expensive marketing agreements in sport.
Top Swiss brand Rolex has served as the official timekeeping sponsor of Formula 1 since 2013, its signature green and gold adverts becoming commonplace at F1 tracks. The popularity of Formula 1 has exploded during the period driven, in part, by the success of the Netflix series ‘Formula 1: Drive to Survive.’
Now Tag Heuer, a smaller Swiss watch brand owned by LVMH, is in talks to take over the F1 sponsorship deal, LVMH Chief Financial Officer Jean-Jacques Guiony confirmed in a conference call Tuesday evening following the company’s second quarter financial results.
“There are some discussions, but it’s not something I can elaborate on,” Guiony said. “Nothing is decided,” he added.
A Rolex spokesperson in Geneva declined to comment. A spokesperson for Formula 1 didn’t immediately respond to email requests for comment.
The talks underscore LVMH’s ambitions for its watch unit, which includes the Tag Heuer, Hublot and Zenith brands. The combined sales of the watch unit, led by Frederic Arnault, one of LVMH founder Bernard Arnault’s five children, trail Rolex, as well as brands owned by Richemont and Swatch Group AG in total market share.
Coronet, an online blog dedicated to Rolex news, first reported on the talks earlier this month. Coronet reported that Rolex currently pays “tens of millions of dollars” annually under the sponsorship deal and that a potential new annual contract with LVMH could be worth $150 million.
The discussions come amid an industry wide downturn in demand and sales for Swiss watches and changes in the executive suite at LVMH’s watch brands. The company said Antoine Pin would take over as CEO of Tag Heuer after Julien Tornare departed the role for the top job at Hublot after less than a year in the post.