Rolex Is Giving Up on Formula One

[77T]

Originally Posted by askdanny

After 11 years as a Global Partner and the Official Timepiece of Formula One, Rolex will cede the sponsorship in 2025...

—Danny

Thanks for sharing Danny.

How reliable is your LMVH source?

Asking since it's silly season early in the F1 driver market. Maybe it's bleeding over into the sponsor market?


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[dukie748]

I would imagine the current popularity of F1 has allowed Liberty Media to increase sponsorship costs exponentially - fortunately Rolex doesn't 'need' Formula 1 to sell watches, and likely refused to pay more.

Add in the somewhat debasing effects of social media / influencers / alarm over global warming and the current push for 'green' everything - F1 may no longer align with the overall intentions of Rolex.

I will miss seeing the Rolex branding throughout races, and a little prestige to the sport will be lost - Liberty won't care, my perception of late is F1 is moving a little 'downmarket' and is targeting the mass audiences. The bottom line is - it's all about money.

[Neil McCauley]

Originally Posted by dukie748

my perception of late is F1 is moving a little 'downmarket' and is targeting the mass audiences.

If you feel that way (and if I think about it, as do I) then Rolex will see this too, and is likely one of the reason's they're pulling the plug - and, as you say, money

[nachopc]

Originally Posted by LuxLemon

Rolex likes to sponsor individuals or recognize individual winners (see Tennis champions, Equestrian, individual ambassadors)

Well they do Wimbledon or Augusta Masters and they are not individuals.


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[Cambo]

Rolex is a major sponsor of so many sporting events, it’s no surprise that they can’t hold on to every one. Their marketing budget must be astronomical. They have had a great/massive run for the last few years. I’m not surprised they will start whitteling down on some sports, especially seeing prices/demand come back to Earth.

[Neil McCauley]

Originally Posted by Cambo

Rolex is a major sponsor of so many sporting events, it’s no surprise that they can’t hold on to every one. Their marketing budget must be astronomical. They have had a great/massive run for the last few years. I’m not surprised they will start whitteling down on some sports, especially seeing prices/demand come back to Earth.

Rolex isn’t struggling to sell watches, let’s not be fooled here. This decision isn’t because they can’t afford it, obviously.

[Cambo]

Originally Posted by Neil McCauley

Rolex isn’t struggling to sell watches, let’s not be fooled here. This decision isn’t because they can’t afford it, obviously.

My point exactly… but with sales slowing down (and they are), to maintain profit, costs must come come down. This begins in marketing budgets. Clearly Rolex wants to maintain their super sports (golf, tennis) but are willing to let other sports go. In the realm of Motosports, there are some massive heavy hitter advertisers to compete with. They can’t have it all and they recognize this.
Smart IMHO

[Nova1]

I love these comments like Rolex is above it all. Environment, seeing a lower class demographic. Gtfoh.

[Krash]

I think this is more of an indictment on F1 than Rolex.


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[Andad]

Originally Posted by Old Expat Beast

Rolex quite possibly wants to distance itself from the apparently non eco-friendly F1 world of fast cars and private jets as it ramps up the Perpetual Planet virtue signalling.

A good observation Adam.

[Andad]

Originally Posted by Colorado_kid

Agreed.

Although F1 has made efforts to become more efficient (green-ish) it’s probably a place Rolex wants to distance itself.
Hey, they could sponsor Formula E! But nobody cares about that.


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Are we assuming that Formula-E is eco friendly?

[Neil McCauley]

Originally Posted by Nova1

I love these comments like Rolex is above it all. Environment, seeing a lower class demographic. Gtfoh.

These are literally the reasons that Rolex would pull out of sponsoring the F1.
If you don’t get that, I suggest learning a little more about the brand.

[Harry-57]

Originally Posted by Old Expat Beast

Rolex quite possibly wants to distance itself from the apparently non eco-friendly F1 world of fast cars and private jets as it ramps up the Perpetual Planet virtue signalling.

Could well be.

I've always associated Tag Heuer with F1 because of the era I grew up in. Jack Heuer's association with F1 is well known and pre dates sponsorship. It would be nice (for me) to see Heuer or Tag Heuer fill the gap left by Rolex because it's a good historical fit, but in practical terms it doesn't make any difference. I just want to see a good race, which in 2024 is more in prospect than any season I can remember since Button and Brawn took the gongs.

[Tylerlsu2008]

Originally Posted by dukie748

I will miss seeing the Rolex branding throughout races, and a little prestige to the sport will be lost - Liberty won't care, my perception of late is F1 is moving a little 'downmarket' and is targeting the mass audiences. The bottom line is - it's all about money.

What??

Top 3 most ridiculous comment I’ve seen on this forum

[samson66]

F1 isn't even watchable anymore (no pun intended). It's the most uncompetetive racing series out there. Just like the stretch with Lewis Hamilton and Mercedes, now we're in the Max Verstappen phase where he wins just about every race he starts. I usually tune in for a few minutes just to see how much of a lead he has this time. It's funny because they rarely even show him on tv. I mean, what's the point of showing a car with no other car within 5 seconds.

As for Rolex leaving, that's sort of a bummer. Always did like seeing the clocks and the big green sections of the track. This is a good opportunity for Omega to get involved. Agree with others that Tudor would be a great fit.

[Lol-x]

samson66 I agree the F1 sport has become boring and sterile with Verstappen (who isn't the most fun loving character) dominating.

The Rolex sponsorship of F1 must have been an eye-watering annual sum.

My guess is Liberty Media wanted more money and Rolex reassessed the situation and pulled the plug.

No doubt F1 marketing has been huge for Rolex but its reached saturation point and they will now look to other fields of endeavour to market their brand.

You might in fact say Rolex has run its race with F1!!

[Neil McCauley]

Originally Posted by samson66

Agree with others that Tudor would be a great fit.

LVMH will be taking the helm

It definitely won't be Tudor on the signage.

Most likely TAG Heuer will make a comeback IMO

[Nova1]

Originally Posted by Neil McCauley

These are literally the reasons that Rolex would pull out of sponsoring the F1.
If you don’t get that, I suggest learning a little more about the brand.

Literally the reason is money.

[enjoythemusic]

Liberty Media needs your money.

And yours.

Oh, and yes more of that too.

$1500 per person per race to be exact. Ask Las Vegas businesses.

Are you not entertained? Did you see what Lewis wore this morning? And what about Lando? Will they or won't they, we'll find out soon enough.



F1 Games, may the odds be ever in your favor.

FIA, we need Death Race

[Wcdhtwn]

With new manufacturing facilities and rumored increased production in existing, the money has to be taken from one place to spend on another. I have no idea what being the, or one of the, major sponsors of F1 costs, but it cannot be cheap. Better to spend the money making what makes them money, than spending on increasing the brand awareness of one of the most recognized brands in existence.

[7enderbender]

I’m an F1 fan to some degree since the 70s as a kid. And I like Rolex watches. Both have that aura of old world sportsmenship for gentlemen combined with a bit of irresponsible fun if you know what I mean.
I see that both brands are working hard on destroying themselves. Rolex is now jewelry for the nouveau riche of the “developing world. And the F1 races are essentially being pushed out of Europe, the rules and marketing have become Americanized (and not in a good way). I despise all the races in the Middle East and such.
Rolex removing the iconic green banners and clocks is to me another indicator of a declining western world. And I get that we are talking about not even first world problems here. But it fits in with so many things I see and hear everyday that we’re not even allowed to mention any longer.

Fits right in with the news that Zeiss is leaving the photography business.

[Neil McCauley]

Originally Posted by Nova1

Literally the reason is money.

Ok, you win, enjoy your internet victory

[Goupax]

Rolex is sitting on billions upon billions of our dollars, they could have paid double the advertising costs Liberty Media was asking for and not even bat an eye.

My guess is that the F1 has turned into something Rolex doesn't want to be associated with anymore. The brand is in the luxury business first and wants to preserve this aura of exclusivity that doesn't seek to reach to the masses. That's why I think Rolex will keep sponsoring golf, tennis, yachting, etc. sports practiced and attended by the upper classes of society. There is a reason why you have never seen Rolex anywhere close to footballers, basketball players despite their overwhelming popularity and financial success world wide.

There are things beyond money, a status reached by Rolex during the last decade that it wants to project to their customers and the other brands they sponsor. A blend of success and the ability to say NO to someone who thinks he can get his way around the brand with money alone. Status is the name of the game now. And it's all an illusion really, but as long as their clientele keep believing in that carefully written story over the decades, Rolex will keep selling all of the 1.2M watches they make every year, while making you feel special and privileged to have acquired your dream timepiece.

[dba]

I miss Bernie. Ever since Liberty Media took over, there seems to be more emphasis on the entertainment aspect than the racing.

I watched a show on CNBC about the business of F1. I thought the head of Liberty Media came off as slimy as an eel.

[njlam]

Tennis, Golf, Yachting, and Equestrian are the remaining Rolex sponsored sports.

I think these sponsorships are probably safe. Will other sports be added?

[RotorSelfWinding]

I wouldn't overthink it. Rolex has decided not to extend its relationship with Formula 1. Seems reasonable, Rolex doesn't need the publicity and doesn't want to get into a bidding war against the largest luxury goods retailer in the world.

I highly doubt competitive or environmental concerns play a significant part of the relationship.

[Krash]

Originally Posted by RotorSelfWinding

I wouldn't overthink it. Rolex has decided not to extend its relationship with Formula 1. Seems reasonable, Rolex doesn't need the publicity and doesn't want to get into a bidding war against the largest luxury goods retailer in the world.

I highly doubt competitive or environmental concerns play a significant part of the relationship.

I agree.


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[mickyd329]

I don't think it has anything to do with environmental concerns like some have suggested. If that was the case, they should not be involved with Lemans or Daytona 24 which is less environmentally friendly than F1. It also has nothing to so do with Rolex trying to associate itself with the highest/classiest forms of sports. Rolex isn't exactly with pinnacle of luxury either.
Maybe the most well recognized luxury brand, but certainly not the pinnacle. I'm sure it's all about the money. F1 wanted too much money to renew and Rolex bowed out. It's that simple.

[Harry-57]

Originally Posted by mickyd329

I'm sure it's all about the money.

It usually is. It may not be the only factor but it's likely the deciding one. Liberty won't be shy about spilling the whole sponsorship story in due course, so we'll probably know what transpired.

[Neil McCauley]

Originally Posted by mickyd329

I don't think it has anything to do with environmental concerns like some have suggested. If that was the case, they should not be involved with Lemans or Daytona 24 which is less environmentally friendly than F1. It also has nothing to so do with Rolex trying to associate itself with the highest/classiest forms of sports. Rolex isn't exactly with pinnacle of luxury either.
Maybe the most well recognized luxury brand, but certainly not the pinnacle. I'm sure it's all about the money. F1 wanted too much money to renew and Rolex bowed out. It's that simple.

There are many reasons about why you might be wrong here and it’s not as clear cut about a simple monetary decision.

Le Mans and Daytona is not less environmentally friendly than F1. Over the year, travelling around the world, F1’s carbon footprint is massive and has come under a lot of scrutiny recently. Rolex’s charitable contributions and endeavours are beginning to look rather hypocritical with regards to their involvement with F1.
Endurance racing, the WEC specifically are making huge strides in reducing environmental and carbon impact - with hybrid technologies etc, and as of next year, teams have to produce their own bio-fuels, which are 100% renewable. Nothing like F1.

Rolex most certainly do try to associate themselves with “higher tier” sports. It’s why you don’t see Rolex sponsorship at football events and other “blue collar” sports. It’s nothing to do with your opinion of whether Rolex is the pinnacle or not - It’s all about image and how they want to portray the brand.

Money will of course have played a part in the decision, but I guarantee it wasn’t the main reason.. Rolex aren’t struggling and having to cut cloth accordingly, people need to get that out of their heads. They are associating grey market performance with overall Rolex sales, and they are very different things. They’re the biggest most profitable watch manufacturer in the world.