Rolex Pulled out of F1 Because of Contract Length

[askdanny]

I was the first one to report Rolex was ceding the F1 sponsorship to LVMH.

Please see my post, here, dated July 4, 2024: https://www.rolexforums.com/showthread.php?t=952500

Now I'm reporting the reason Rolex did not want to renew the contract is because of a dispute over the contract’s duration.

While F1 wanted Rolex to sign on for ten years, Rolex did not want to commit beyond five years.

My story: https://coron.et/

—Danny

[jeffgo888]

that was a CASH cow for them...why would they not want to sign on for 10 years?

[brkn]

nice website

[Zach69SS]

Rolex does business on their terms period. So does F1 neither one needs the business.
F1 has plenty of sponsors. Sad but true.

[subtona]

Omega will be happy to step in.

[ColoradoTime]

Interesting.

Can’t imagine that this will impact either business in any meaningful way.


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[Jmas]

Curious if Rolex will sponsor a different event now.

[TEPSD4K]

I expect Tag Heuer to be the bigger winner.

[Ichiran]

I stopped watching F1 since a long time back, while I'm still wearing Rolex today.

[chalkflewup]

Originally Posted by Zach69SS

Rolex does business on their terms period. So does F1 neither one needs the business.
F1 has plenty of sponsors. Sad but true.

No doubt. What about a holy trinity brand?? AP? Otherwise the opposite direction like an Omega, Tag or Hublot

[DoubleDeac]

Ever since liberty media bought formula 1, they have been aggressively marketing it to new audiences (including a Netflix show called Drive to Survive that you may know about…) anyway the point being that they have been a bit predatory in the way they are trying to squeeze profit at every turn, and I’m sure Rolex looked at the contract terms and realized it wasn’t worth getting their balls squeezed with a vice grip for 10 years.

[996marty]

Originally Posted by Ichiran

I stopped watching F1 since a long time back, while I'm still wearing Rolex today.

Sounds very much like me

[Moondoggy]

Originally Posted by Zach69SS

Rolex does business on their terms period. So does F1 neither one needs the business.
F1 has plenty of sponsors. Sad but true.

Absolutely 100%. love to be a fly on the wall in those negotiations.

[enjoythemusic]

apologies, self-deleted post.

[Krash]

Originally Posted by jeffgo888

that was a CASH cow for them...why would they not want to sign on for 10 years?

Not really. It’s not going to have any impact on sales. They’re still going to sell every watch they produce.


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[1William]

Good information. Thank you.

[77T]

Since 2013, Rolex has been a Global Partner and the Official Timepiece of Formula 1, they likely didn't like the price jumping up either.

[edit] In late 2016, Liberty Media agreed to buy a controlling interest in F1 for $4.4 billion. (Could be Rolex didn't like them much either)

It was a "one and done" for Rolex. 10 years more or no more years.

If you ask the marketing question:
What does Rolex know that we don't?

Maybe the bloom is off the rose for F1.


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[Mr Ben]

Originally Posted by 996marty

Sounds very much like me

Me three.

[Bald Angus]

Originally Posted by ColoradoTime

I
Can’t imagine that this will impact either business in any meaningful way.


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[Bald Angus]

Originally Posted by Bald Angus

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I tried to agree with this statement.


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[B2 Stealth]

Danny is spot on as usual--thanks for the info!

[6172crew]

I was at the WEC races this last weekend and Rolex was sponsoring that event.
My guess is Tag will pick up the F1 championship if it can.

[brandrea]

Originally Posted by 77T

Since 2013, Rolex has been a Global Partner and the Official Timepiece of Formula 1, they likely didn't like the price jumping up either.

[edit] In late 2016, Liberty Media agreed to buy a controlling interest in F1 for $4.4 billion. (Could be Rolex didn't like them much either)

It was a "one and done" for Rolex. 10 years more or no more years.

If you ask the marketing question:
What does Rolex know that we don't?

Maybe the bloom is off the rose for F1.


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That’s where my mind went to as well

[brandrea]

Originally Posted by subtona

Omega will be happy to step in.

And this ^^^

[dtwer]

Originally Posted by DoubleDeac

Ever since liberty media bought formula 1, they have been aggressively marketing it to new audiences (including a Netflix show called Drive to Survive that you may know about…) anyway the point being that they have been a bit predatory in the way they are trying to squeeze profit at every turn, and I’m sure Rolex looked at the contract terms and realized it wasn’t worth getting their balls squeezed with a vice grip for 10 years.

Good analysis.

Perhaps Rolex could switch sponsorship to NASCAR.

[PenDelicate]

Originally Posted by Krash

Not really. It’s not going to have any impact on sales. They’re still going to sell every watch they produce.


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That's a good point: but if dropping such a huge sponsorship doesn't affect Rolex's sales, then why were they paying for it?

I get the impression that Rolex's advertising isn't aimed at the current market, it's sort-of aimed at the market in 10 year's time. Or 20 year's time. Or at least: it's aimed partially at teenagers today who watch F1 but can't afford a Rolex, who then, in a decade or two, buy their first luxury watch and those warm, fuzzy memories of their favourite F1 team winning, on rostrums draped in Rolex insignia, come flooding back ...

[KatGirl]

Originally Posted by dtwer

Good analysis.

Perhaps Rolex could switch sponsorship to NASCAR.

When I think of NASCAR, they have a different audience than F1 fans, who perhaps aren’t the type of people who buy Rolex watches.

Kat


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[the_Hunter]

Originally Posted by DoubleDeac

Ever since liberty media bought formula 1, they have been aggressively marketing it to new audiences (including a Netflix show called Drive to Survive that you may know about…) anyway the point being that they have been a bit predatory in the way they are trying to squeeze profit at every turn, and I’m sure Rolex looked at the contract terms and realized it wasn’t worth getting their balls squeezed with a vice grip for 10 years.

Im guessing that Rolex didnt want to lock in 10 years at a high point. I don't see the sport continuing to grow as the same rate it has in the last 4-5 years and I am sure Liberty wanted $ based on that growth continuing.

my .02...

I will still wear my Rolex and I will still go to 1-2 GPs a year... wearing my Rolex :-)

[jb335]

Originally Posted by the_Hunter

Im guessing that Rolex didnt want to lock in 10 years at a high point. I don't see the sport continuing to grow as the same rate it has in the last 4-5 years and I am sure Liberty wanted $ based on that growth continuing.

my .02...

I will still wear my Rolex and I will still go to 1-2 GPs a year... wearing my Rolex :-)

I agree with this. Re-upping at a perceived peak probably caused some indigestion.

Thanks Danny, always appreciate your info.


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[HappyPrince]

Originally Posted by dtwer

Good analysis.

Perhaps Rolex could switch sponsorship to NASCAR.

Not in a million years