Editorial: LVMH and Rolex Vying for Formula 1

The all-important context behind the potential deal.

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 retain sponsorship rights.

A Daytona clock at the 2024 Japanese Grand Prix. Image – Rolex

That leads to the next factor: can Rolex afford to? For the purposes of an F1 sponsorship, the answer is clearly a yes. Rolex annual revenue is about CHF10 billion, while LVMH is about eight times as large at €80 billion a year.

Despite that disparity, the scale of an F1 timekeeping sponsorship deal is in the tens of millions, or perhaps low-hundred millions. That is affordable for Rolex, which bought a brand-new Bombardier Global 7500, which costs about US$75 million, for its chief executive in 2020.

If Rolex does indeed give up its F1 deal, it might well be because of branding reasons, most notably the brand’s support for conservation and sustainability, exemplified by its Perpetual Planet initiative. This is all the more salient given that the biggest F1 sponsor is fossil fuel Aramco.

The pit lane clock at the 2024 Spanish Grand Prix. Image – Rolex

Stronger together

TAG Heuer, like Rolex, boasts a long and significant history in motorsport. The chief executive of its watch division, Frederic Arnault, was previously in charge of TAG Heuer and has expressed his desire to enhance the brand’s standing in motorsport. And some amongst LVMH leadership were sore that Hublot, another marque in the group’s watch stable, lost Ferrari to Richard Mille at end 2020.

In fact, a Formula 1 insider revealed that the mooted LVMH-F1 has its roots in the group’s alcohol division – in which drinks giant Diageo owns a third – wanted to grow its presence in F1 from just supplying champagne.

But today’s possible LVMH-F1 deal is about more than liquor or watches. LVMH owns 75 brands that span the width of luxury goods, from “hard” luxury like watches and jewellery”, to “soft” luxury like Louis Vuitton and Dior, to alcohol as well as experiences with its hotels. If LVMH does sign an F1 deal as seems likely, it won’t be just for the position of official timekeeper, but something far more expansive, as the group’s sponsorship of the Paris 2024 Olympics has demonstrated.

The potential is obvious beyond the TAG Heuer branding along the track and clocks: a Bulgari trophy in a Louis Vuitton trunk for the winners who are sprayed with Moët & Chandon, while spectators lounge around in the Paddock while enjoying Veuve Clicquot dispensed by servers wearing Loro Piana kit. And guests could even stay in LVMH hotels at certain racetracks.


 

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Omega’s CK 859 in Bronze Gold for the Paris 2024 Olympics

A nod to the medals for the winners.

A timepiece that pays tribute to the medals of the Olympic Games, the Omega Paris 2024 Bronze Gold Edition is a riff on the vintage-inspired CK 859. It retains the same dimensions and design, but manages to incorporate all three medal materials – gold, silver, and bronze. The case is a bronze-gold alloy, while the dial is sterling silver with Clous de Paris guilloche.

Initial thoughts

Among the countless Olympic-themed watches – Omega launched its first 2024 Olympics watch over a year ago – the Bronze Gold Edition stands out for its unique use of materials. It’s a thoughtfully designed watch that celebrates Omega’s status as the timekeeper of Paris 2024. With no Olympics branding or emblems on the front, it’s not obviously an Olympics watch, but smartly captures the Olympic ideal by utilising the three alloys in the case and dial.

At the same time, the Bronze Gold Edition is more visually interesting than the CK 859 that had a simple grained dial that was arguably too plain for the relatively wide dial.

Priced at US$12,000, the Paris 2024 Bronze Gold Edition is a good value proposition. Though not novel, the vintage-inspired design is appealing and made more interesting with the guilloche silver dial. And as Olympics editions go, this one is subtle in terms of design yet entirely apt in terms of concept.

A special gold alloy

The model gets its name from Omega’s proprietary Bronze Gold, an alloy launched in 2022 with the Seamaster 300 that is actually low-carat gold. More specifically, it is 9k gold, which means it is made up of 37.5% pure gold in terms of weight, with the rest being copper, palladium, and silver. The result is a metal that has the vintage feel of bronze – it complements the vintage-inspired design well – but one that will not develop the patina typical of ordinary bronze alloys.

The Paris 2024 Bronze Gold Edition has the same dimensions as the original CK 859, so the case is 39 mm in diameter and 11.7 mm in height.

The “sector” dial is crafted from solid sterling silver, hence the “Ag 925” hallmark just above the hands. It’s finished with Clous de Paris in the centre, while the chapter ring is concentrically brushed. As a vintage remake of sorts, this sports the vintage Omega logo dating from the 1930s. Notably, the hands are of higher gold purity than the case: they are 18k Sedna gold PVD-coated in Bronze Gold.

Unlike the CK 859 that featured an open back, this has a solid back in Bronze Gold like the case. The back features a relief logo of the Paris 2024 Olympic Games, along with the model reference “BG 859”, short for “Bronze Gold 859”.

Underneath the solid back is the METAS-certified cal. 8926, part of the latest-generation 8900 family of movements. It has twin barrels for 72 hours of power reserve and like all Omega movements equipped with a silicon hairspring, beats at 25,200 beats per hour (3.5 Hz).

The components of the co-axial escapement are made from non-magnetic materials, which contributes to a resistance to magnetic fields of up to 15,000 Gauss.


Key facts and price

Omega Paris 2024 Bronze Gold Edition
Ref. 522.92.39.21.99.001

Diameter: 39 mm
Height: 11.7 mm
Material: Bronze gold and silver 
Crystal: Sapphire
Water resistance: 30 m

Movement: Cal. 8926
Functions: Hours and minutes
Winding: Automatic
Frequency: 25,200 beats per hour (3.5 Hz)
Power reserve: 72 hours

Strap: Brown calf-skin leather strap, paired with a sandblasted Bronze Gold buckle with a polished vintage OMEGA logo in positive relief

Limited edition: No
Availability: Now at Omega boutiques and retailers
Price: US$12,000

For more, visit omegawatches.com


 

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