On Thursday, LVMH’s CEO Bernard Arnault confirmed that a contract is “being discussed,” after months of rumours that the French luxury giant could become a premium sponsor of the 2024 Paris Olympics.

“The contract you are talking about has not been signed. It is being discussed and, like any discussion, it could end with a signature or not,” said Arnault, answering a shareholder’s question at LVMH's AGM.

The world's number one luxury group becoming a premium sponsor, alongside five others who have already signed up (BPCE, Orange, EDF, Sanofi and Carrefour), is highly anticipated.

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The Games’ organising committee has said that nearly 80% of the sponsorship budget was covered by the end of 2022, and signing up another so-called tier-1 partner or premium sponsor (after BPCE, Sanofi, EDF, Orange and Carrefour), for an investment estimated at between €100 million and €150 million, would be a relief for the organisers.

The organising committee’s budget, which is only a portion of the Olympics’ total budget, is based on ticketing revenue, sponsorships and a contribution from the International Olympic Committee (IOC).

The budget is 96% privately funded, and at the end of 2022 its value rose to €4.4 billion, a 10% increase, half of which due to inflation. Since 2018, the budget has increased by €600 million.

The Olympic Games’ sponsors are divided into several categories, according to their financial participation level: global partners (members of the IOC’s TOP programme), premium partners, official partners and official supporters.

The global partner category includes some 15 major groups, including Airbnb, Alibaba, Coca Cola, Intel, Samsung and Toyota.