The Paris 2024 Olympics and the French luxury behemoth negotiate a €150 million ($161.31 million) sponsorship agreement.
One of Bernard Arnault’s five kids and his heirs, Antoine Arnault, will likely choose the final details of LVMH’s potential Olympics sponsorship. This high-profile contract will put the 46-year-old’s marketing skills to the test.
All five of Bernard Arnault’s children have prominent roles at LVMH, and each is closely scrutinized for any indication that one of them might emerge as the CEO’s eventual successor, despite the 74-year-old’s lack of any immediate plans to stand aside.
While Antoine Arnault enjoys the highest level of public visibility, the other four are also making their public debuts as they advance through the executive ranks, particularly his older sister Delphine Arnault, who in February was named CEO of the group’s second-largest fashion company, Dior.
Promotions centered on LVMH as a whole, its two major fashion labels, the Louis Vuitton and Dior brands, as well as champagne are the focus of discussions on the Olympics agreement that Antoine is currently negotiating. According to a person acquainted with the group’s negotiations, Bernard Arnault, the richest billionaire in France, may have to pay up to €150 million ($161.31 million).
With less than a year until the event, France is very interested in the late-stage discussions between the Paris 2024 Organizing Committee and the largest luxury conglomerate in the world, which is also Europe’s most valuable firm with a market capitalization of over €400 billion.
The oldest of Arnault’s four sons, Antoine, did not play a prominent role in the public eye.
According to Tony Estanguet, CEO of Paris 2024, it isn’t finalized as of yet.
We want to make sure that this cooperation makes sense and is balanced, he said, adding that this process takes time.
The chief defender of the luxury group’s reputation is Antoine, who also serves as chairman of the knitwear company Loro Piana and CEO of the Italian menswear label Berluti.
He has, for instance, sponsored annual workshop visits for the general public and used the stage to promote LVMH’s environmental credentials.
His top aim in the sponsorship contract will be communicating LVMH’s position as a supplier of workmanship and French tradition while avoiding overt brand logo display that would damage its reputation.
For its leading labels, the group’s involvement in the Olympics is likely to include prominent social media and poster campaigns, similar to one of Arnault’s recent successes for Louis Vuitton last November, which featured soccer players Cristiano Ronaldo and Lionel Messi playing chess at the start of the FIFA World Cup in Qatar.
Despite the fact that Antoine Arnault is guiding LVMH’s sponsorships of the Olympic Games behind closed doors, the results would be very visible.
“On the sidelines of LVMH’s annual shareholder meeting in April, he stated of the opening ceremony, “It will probably be the most-watched event in the entire history of television sets in the history of the games—a spectacular event.
Although LVMH is already identified with France, according to Steve Martin, worldwide CEO of M&C Saatchi Sport & Entertainment options an official sponsorship of the Olympics would serve to further set LVMH apart from premium competition.
In their own back yard, in my opinion, is a pretty appealing approach to go about it, Martin added.
A more difficult task will be avoiding conflict. The buildup to the Olympics has historically been contentious, with previous competitions being marred by concerns over blatant commerce, as in Atlanta in 1996, or congested traffic, as in the case of London in 2012.
There are worries that the ceremony would be tarnished by protests in France, where public demonstrations are prevalent.
This spring, Bernard Arnault’s likeness appeared on placards in support of pension reform, and protestors flocked to LVMH’s Avenue Montaigne offices to demand that the wealthy fund the public pension system.
Sidney Toledano, CEO of the LVMH fashion business, told Reuters that if his company got engaged, it would be to lend a hand.