LVMH agreed to become a premium sponsor of the 2024 Summer Olympics in Paris in the first deal of its kind for the luxury conglomerate as corporate France packs its financial muscle into the games.
The owner of Louis Vuitton is pouring €150 million ($166 million) into the Olympic and Paralympic games, the biggest sponsorship commitment of any company, according to people familiar with the matter who declined to be named.
The announcement by Europe’s most valuable company ends months of speculation over its participation in the sporting events. LVMH joins a list of premium partners that includes telecoms carrier Orange SA, Air France-KLM and grocer Carrefour SA.
Some LVMH Moet Hennessy Louis Vuitton SE brands have been official partners of global competitions, including watchmaker Hublot, which has been the official timekeeper of the football World Cup. But this is the first sponsorship by the luxury conglomerate headed by Bernard Arnault — the world’s second wealthiest person after Elon Musk.
The deal “will contribute to heightening the appeal of France around the world,” Arnault said in a statement. LVMH’s jewelry brand Chaumet will design the games’ medals while wines and spirits produced by Moet Hennessy will be served to hospitality guests.
The Summer Olympics will take place next year between July 26 and Aug. 11, mostly in the French capital although some events will take place in Marseille and Tahiti. They’ll be followed by the Paralympic Games between Aug. 28 and Sept. 8. Other French companies are dashing to secure sponsorship deals as the events near.
Air France struck a deal to become so-called level-2 sponsor, which will help give the brand more visibility and win new customers, group Chief Executive Officer Ben Smith said in a phone interview Monday. He declined to elaborate on cost.
“This is not charity,” Smith said. “It’s a great way for Air France to show the best of itself and to help show the best of France and the best of Paris. We think the risk of a negative return on investment is almost zero.”
(Updates with amount invested in second paragraph)