F1 Rumor: Rolex to Loss Major Sport Sponsorship Amidst Wimbledon Fervor as $150 Million Boost Presents New Rival

Have you ever noticed when the camera zooms in on a giant Rolex clock at every F1 race? Well, the days of Rolex enjoying its spot as the Global Partner and Official Timepiece of Formula 1 might soon be over. The Swiss brand, with a net sales of over $10B last year, has reportedly lost the bid to sponsor F1 in the upcoming seasons. Thus, the watchmaking company will have to walk out of its 11-year-long allegiance to the king class of motorsports. Rumors claim that, in Rolex’s place, a new mogul in the watchmaking industry will arrive – LVMH.

LVMH Moët Hennessy Louis Vuitton is a product of a huge merger between fashion house Louis Vuitton and the alcohol brand Moët Hennessy. The Paris conglomerate is home to Tag Heuer and Hublot, which are both direct market competitors of Rolex. In fact, Tag Heuer already has a footprint in Formula 1 as it has been the official timekeeper and partner of Red Bull since 2016. While the company’s contract with the World Championship-winning team is going to end in 2024, it seems that Tag Heuer’s parent company is now interested in getting a bigger chunk of F1 than just a single team.

As per the reports floating around on social media, LVMH has put up a formidable deal to sway the F1 authorities its way. The French group is ready to offer $150M annually to become Formula 1’s official chronometer from 2025. Meanwhile, Rolex has to leave the pinnacle of motorsports at a time when it is busy holding up its end of another major deal with the Wimbledon Games. The Swiss brand is also an Official Sponsor of the prestigious tennis tournament that is currently underway, as their alliance has been going on for 40-plus years.

While speculations point towards Rolex’s exit from Formula 1, no official confirmation has come as of yet. Also, the Swiss brand has not explained a reason for severing its bond with the franchise at a time when the popularity of F1 has reached every corner of the world. So, what might have driven the watchmaker to leave its deal and cede to LVMH?

Carbon footprint might be a major cause behind Rolex’s F1 exit

With the recent boom in Formula 1’s popularity, its calendar has grown to include 24 Grands Prix in the current season. Thus, the entire crew has to travel to two dozen different locations all around the world with the expensive racecars, the technicians, and whatnot. All of this has increased F1’s carbon footprint considerably. As per a report released by the motorsports franchise, it has a carbon footprint of 223,031 tCO2e per season. Meanwhile, Rolex promotes a reduction in pollution through its Perpetual Planet initiative.

Thus, the conflict between Rolex’s policies and the increasing carbon footprint of Formula 1 might have caused the brand to leave the partnership. On the other hand, finances might have played a huge role in deciding who gets to be the official watchmaker of F1 from the next season onwards. While Rolex has a yearly sales record of $10B, it comes nowhere near the net sales of LVMH ($93B). This can be another factor that led to F1 picking a new timekeeper by bidding adieu to Rolex.

The entry and exit of sponsors in F1 is not a new phenomenon. Previously, one of the Formula 1 teams, Mercedes, reportedly lost Puma and Tommy Hilfiger as soon as Lewis Hamilton announced his move to Ferrari in 2025. As one of the most expensive sports franchises, the deals in F1 are worth millions and billions, and thus, business always gets priority over long-lasting relationships.

Do you think this is why Rolex reportedly left despite its 11-year-long allegiance to F1? Share your opinions in the comments below.