As the sport of Formula 1 grows across the globe, sponsors are running to get their name on the track. The sport is not attracting just any old names, but some of the most luxurious brands in the world.
F1 is still riding high on a boom period, taking the momentum from Drive to Survive and turning it into tangible results.
The calendar is expanding as every country wants a piece of the pie.
Areas like Madrid and Las Vegas have gone out of their way to court the sport, building street tracks in the center of the city.
The Race winner trophy is seen in a Louis Vuitton trunk on the podium following the F1 Grand Prix of Monaco at Circuit de Monaco on May 26, 2024 in Monte-Carlo, Monaco.
The Race winner trophy is seen in a Louis Vuitton trunk on the podium following the F1 Grand Prix of Monaco at Circuit de Monaco on May 26, 2024 in Monte-Carlo, Monaco.
Photo by Clive Rose/Getty Images
On the commercial side, F1 is attracting more sponsors than ever before, making the cars essentially moving billboards, while the drivers also have numerous sponsors on their race suits and off-track deals.
Heading into the 2025 season, the series saw several big-name brands join as sponsors with massive, long-term deals.
F1’s LVMH Sponsorship Deal
Before the start of the season, an announcement came regarding one of the biggest sponsorship deals signed in the sport.
French luxury conglomerate LVMH, which includes Louis Vuitton, Moët Hennessy, and Tag Heuer, among others, has signed a $1.5 billion deal, paying the sport $150 million per season over the next 10 years.
Tag Heuer replaces Rolex as the official timepiece of F1. Moet Hennessy took over Ferrari Trento as the official sparkling wine of the series.
Also, Belvedere became F1’s official vodka as a part of the deal.
All of these brands in the LVMH portfolio are considered to be high-class, and they continue the trend of luxury brands being increasingly interested in signing with the sport.
This combination of pictures created on October 2, 2024 shows a logo of Formula One (F1) at the Bahrain International Circuit in Sakhir on March 1, 2024 and World’s top luxury group LVMH’s logo in…
This combination of pictures created on October 2, 2024 shows a logo of Formula One (F1) at the Bahrain International Circuit in Sakhir on March 1, 2024 and World’s top luxury group LVMH’s logo in Paris on January 26, 2023.. After being a partner of the Paris 2024 Olympic and Paralympic Games, LVMH announced on October 2, 2024 a global partnership with Formula 1 from 2025 for a period of 10 years.
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Photo by Giuseppe CACACE and Stefano Rellandini/Getty Images
Which Sponsors Signed an Extension With F1?
DHL signed a reported $40 million per-season deal with the sport last year, securing the longest-running active sponsor in the sport for the foreseeable future.
Heineken signed a reported $250 million deal over nine years as the beer company looks to promote its non-alcoholic beer.
What is F1’s Sponorship Portfolio?
According to Ampere Analysis, the sport is expected to generate $2.9 billion this season, with 18.6% of the sport’s revenue coming from sponsorships.
As races come to different areas of the world, there are new companies that can enter the picture, with F1 having the choice between picking the more well-known brand or the one that offers the most money.
Big carmakers like Ford and Cadillac are also entering the space, with potential others likely to enter the picture as well.
While there is a ceiling on how much money the sport can make, the recent trends and data show that it is nowhere near reaching its earning potential.
For more F1 news, head on over to Newsweek Sports.