F1 Signs Massive 10 Year LVMH Sponsorship Deal

Formula 1 has signed a massive 10-year sponsorship deal with LVMH and that was just one of three major Business of Motorsport stories that happened over the last week. In addition to the LVMH deal, Michael Andretti stepped back from an ownership role with his Andretti Global race team and 23XI Racing and Front Motorsports have filed a joint lawsuit against NASCAR accusing the governing body of “anti-competitive and monopolistic control of the sport”. Let’s delve into the details.


Motorsport Industry News

Formula 1

F1 Signs Massive 10 Year LVMH Sponsorship Deal

Formula 1 confirmed Wednesday that it has entered a decade-long global partnership with LVMH, a collaboration both sides call an “unprecedented agreement between the world leader in luxury and the pinnacle of motorsport.” The 10-year deal will launch in 2025, F1’s 75th anniversary, with further details of what to expect coming early next year. However, expect a number of LVMH’s brands, including Louis Vuitton, Moët Hennessy, and TAG Heuer, to participate throughout the partnership. 

Hear are two good analysis of the deal:


Alpine F1

With Renault officially confirming it’s closing its Formula 1 engine program, is the sale of the Alpine team a step closer? Despite all the denials around the idea, Edd Straw and Scott Mitchell-Malm of The Race are convinced that’s the long-game idea, as they explained in their column in July.

This, by the way is the same conclusion reached by Motorsport Prospects contributing author Anirban Aly Mandal in his article Is Alpine F1 up for Sale? A Companies Law Perspective.

“In summation, Alpine Racing Limited’s share re-classification could be seen as an effort by the Company to set up a transfer of Renault’s stake in the team. Alternatively, and at best, as there is no concrete confirmation in this regard, the team could be keeping their options open in case an eventuality arises where the top brass of the French manufacturer decides to pull the plug on its F1 operations completely. In light of the recent appointment of Hitech Grand Prix’s Oliver Oakes as the team principal of Alpine, and Hitech’s initial interest in joining the sport, the former could be seen as the most probable hypothesis.”


Business of Motorsport

After a fairly quiet few months after vowing to step back, FIA president Mohammed Ben Sulayem has been in the news quite a bit lately. First was his crackdown on F1 drivers swearing on television which hasn’t gone down too well with the drivers.

Then he has complained that the FIA is not getting enough income from F1 or credit for a job well done while Liberty Media rakes in the cash. Of course as Ben Hunt in a recent Autosport opinion piece explains, “one is a regulator, another is a promoter. They do different jobs and have different financial models. To use the idiom above, the Joneses are in a different league when it comes to spending.”

Now he is complaining that he has not been treated fairly by the British media during his tenure. “I see he had his share [of mistreatment], but let’s talk about me. If you look at the British media and what they did to me… For God’s sake, they convicted me. They didn’t accuse me [of anything], but they keep on [going]. And do I care? No. Why? Because what are they after? They are after selling and getting more coverage for them[selves]. Of course, yes. But they have no power over me and over the FIA.”

Meanwhile, two more senior FIA figures are departing the governing body. The departure of director of communications Luke Skipper and secretary general of mobility Jacob Bangsgaard comes in the wake of a series of major FIA departures over the course of the past 12 months. With an election due in 2025, this could be an interesting year ahead.


Business of Motorsport

The United States Grand Prix venue Circuit of the Americas has gone from strength to strength in recent years and Autosport tracks its journey. As COTA executive chairman Bobby Epstein has revealed, even F1’s booming interest in the United States has not been immune to ticket sales being influenced by how competitive things are on Sunday afternoons.

“I think we’re in good shape coming up to this grand prix, although the route to get here was a little bit different this year from a fan standpoint,” explained Epstein about preparations for this month’s USA GP. “Our ticket sales really took off when Max [Verstappen] stopped winning and it got more competitive.”


Episode 30 of the Gage Podcast features GT Academy founder Darren Cox who talks about the intersection of Formula One and Web3 technologies. “Sean and I also touch on the failures of crypto partnerships in Formula 1 and what lessons can be learned from those as well as potential investing ideas in FormulaOne now that the teams values are ‘frothy’!”

You can listen here.


IndyCar

Business of Motorsport

Just after last Friday’s Business of Motorsport Roundup was published came the bombshell news that Michael Andretti was stepping down from an ownership role at Andretti Global.

Questions immediately were raised on whether it was voluntary or whether he was forced out but Andretti explained to the Associated Press that the timing was right to make the change.

“We’ve been working on this for a few months now. For me where I am in my life and what I want to do, the timing was right for me to take a little different role with the team,” Andretti told AP. “A role where I don’t have to be on it every day and I can still stay involved because I’ll be involved as an advisor as well as an ambassador. We were able to come to a deal between myself and Dan and I think we are both happy with what we came up with.”

The other question that was raised was about the status of his attempt to enter a team into F1. The Drive speculates that this could be good for his bid.

“Michael’s stepping down from the ownership role and letting someone else unrelated to the family captain the ship is a smart move, and it could help Andretti Cadillac’s situation. If Liberty Media hates Mario and Michael so much, perhaps they’ll love Towriss. After all, he’s already been spending loads of money as a sponsor in F1. Every bit helps, y’know?”


In other, less dramatic IndyCar news, the series will be headed back to the Lone Star State in 2026 with a race on the outskirts of Dallas. The street race is set to be held around AT&T Stadium, home of the National Football League’s Dallas Cowboys, on the team’s expansive campus located in Arlington, Texas. RACER has all the details.


Quick Takes on the Business of Motorsport This Week

Sandown
Motorsports Gateway Howell

Highlights from the Sustainable Motorsport Roundup

Net Zero

Motorsport is aiming to become Net Zero and this week in the Sustainable Motorsport Roundup you will learn about some initiatives that it hopes will get it there. I also have a look at a very cool project between P1 Fuels and Tilke, recycled E-Fluids and an open test day for junior drivers interested in the NXT Gen Cup.

You can read the column here.


The Numbers

Lando Norris Social Media Stats

Lando Norris dominated the Singapore Grand Prix and cut into the championship lead by finishing 20 seconds ahead of Max Verstappen. His teammate, Oscar Piastri, climbed from fifth to third place, solidifying McLaren’s position in the constructors’ championship against Red Bull. In the realm of social media, Blinkfire Analytics explores the phenomenon of Lando Norris and the latest viral content from Formula 1. Read their analysis here.


Motorsport Law Roundup

A look at some of the legal and regulatory issues and analysis in Motorsport this week

Business of Motorsport

23XI Racing and Front Row Motorsports have filed a joint lawsuit against NASCAR accusing the governing body of “anti-competitive and monopolistic control of the sport”. The suit claims:

  • NASCAR and its owners, the France family, are “monopolistic bullies” who eliminated competition in the sport by buying up racetracks and making teams sign exclusivity agreements.
  • The company threatened to take away teams’ charters if they didn’t sign its offer for next season. At least four teams are listed as having signed the contract under duress.

As Michael McCann of Sportico points out:

At the heart of the lawsuit is a debate over charters, which are central to NASCAR functioning like a pro sports league. Charters guarantee teams a starting position in NASCAR-sanctioned races while restricting their capacity to compete in other circuits. The core questions of the antitrust analysis: Do those charters promote economic competition by enhancing NASCAR’s popularity and generating professional opportunities for drivers and their teams? Or do they diminish competition by reducing chances to race outside the NASCAR system?

Michael Jordan’s NASCAR Antitrust Case Could Face Yellow Flags

Here are a number of articles analyzing the situation for those interested in the legal aspects of the suit.


Felipe Massa has offered an update on his lawsuit against F1, the FIA and Bernie Ecclestone. He still believes in the righteousness of his case but hopes it will be over soon as the legal bills are piling up.

“I never thought I was going to be part of such a thing in my life,” he said. “It’s not easy. It’s also very expensive, a lot of money, so I really hope things finish soon. But we’ve been waiting so long now for justice, we have to hope the truth comes out and there will be justice.”


A United States judge has dismissed the trademark infringement case made by Haas Automation against its former Formula 1 team principal Guenther Steiner over his autobiography “Surviving to Drive.”

“The Book recounts Steiner’s experiences as team principal of the Haas F1 Team during the 2022 season,” the court documents stated. “Using photos that include the Haas marks is an artistic choice to provide additional context about the 2022 season with the Haas F1 Team.” Autosport has all the details.


In connection with promoting his law practice, James Avery deducted for income tax purposes expenditures he incurred to support his activity as a racing car driver. Avery characterized these expenditures as advertising expenses related to promoting his law practice. The IRS disallowed the expenses as not ordinary and necessary to Avery’s practice as a personal injury lawyer. James W. Avery, TC Memo 2023-18 (“James W. Avery“), on appeal 10th Circuit of Appeals (No. 23-9004).

Read more at Law.com.


Motorsport Sponsorship & Partnership News

Here are the latest motorsport sponsorship deals, partnerships and related analysis that were announced this week

Lewis Hamilton Dior Collection
Red Bull Hard Rock Partnership
Ford Red Bull Academy

The Business of Running a Race Team

F1 Signs Massive 10 Year LVMH Sponsorship Deal

Team & Manufacturer News

Here is a roundup of the latest team news from around the world of motorsport

Business of Motorsport
Abt Sportsline
Renault F1 Engine
Business of Motorsport
AO Racing
F1 Signs Massive 10 Year LVMH Sponsorship Deal

Mark Boudreau
Author: Mark Boudreau

Mark is the publisher of Motorsport Prospects. As a former lawyer, he applies his legal background and research skills to assist race drivers by showcasing the resources they need to make their motorsport careers happen.