Formula 1 News: Series set to replace Rolex with another brand
(GMM) Formula 1 could be set to replace one of its biggest global sponsors, Rolex, according to the Swiss newspaper Blick.
The deal with the well-known luxury Swiss watchmaker Rolex, involving official timekeeping, dates back well over a decade, with F1 legend Sir Jackie Stewart instrumental in the F1 link-up at the time.
“I proposed that they support the entire series and it was one of the best choices they could have made,” Stewart, now 85, said.
Blick newspaper declared on Tuesday: “Is Rolex withdrawing from Formula 1?
“Rumors are circulating in Geneva that Rolex is withdrawing as a sponsor. An LVMH brand is set to step into the breach.”
French multinational LVMH’s full identity is Moet Hennessy Louis Vuitton, including watch brands Tag Heuer and Hublot.
This new deal could be worth $150 million each year.
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In 2023, Rolex had a record year with sales of $11.5 billion (10.1 billion Swiss francs), which was an 11% increase from 2022. The Geneva-based luxury watch brand also increased its retail market share to over 30%. In addition, Rolex’s brand value was estimated at $10.7 billion in 2023, which was the highest it’s been since 2016
Rolex’s strong financial position is due to self-financing, which involves reinvesting revenue instead of taking out loans or issuing equity. This allows the company to continue investing and maintain consistency even during market volatility.
Their watches are also known for holding their value and potentially increasing in value over time, making them a potentially profitable investment. Different models can hold different values, especially on the secondary market, with many vintage Rolex Daytons and Submariners being particularly notable for their increased value.
