Neil Morrison | December 30, 2024
KTM’s long-term MotoGP plans are in a precarious state with a report in the Austrian media pointing to the factory withdrawing from the MotoGP paddock at the end of 2025.
The Austrian manufacturer entered a self-administration debt restructuring plan at the close of November with KTM AG reporting liabilities of a staggering €2.9 billion ($3.03 billion).
During the company’s bankruptcy hearings, it also emerged the company has accumulated 265,000 unsold motorcycles in inventories around the world.
Thus, KTM bosses are frantically trying to find ways to slash expenditure over the coming months to keep the company afloat.
All that work could be for nothing with rumors of KTM’s imminent departure from MotoGP gaining traction.
And with KTM currently spending in the region of €95 million per year ($98 million) on its racing operation, with €46 million ($46 million) of that going directly into road racing, according to Austrian newspaper Der Standard, it appears there is an obvious way to trim outgoings.
The same publication states KTM is seeking a way out of Grand Prix racing at the close of 2025, in a move that would save them close to $50 million.
KTM allayed fears it could withdraw immediately from MotoGP just before Christmas. On December 20, after a restructuring deal was agreed with creditors in Austria, a spokesperson for the factory reconfirmed their commitment to MotoGP in the short-term.
“Today marks an important day for KTM with the confirmation of our restructuring proceedings,” the KTM representative said. “This milestone secures our plan moving forward, and we are proud to confirm that motorsport remains an integral part of this restructuring plan.
“KTM stands firmly committed to motorsport,” the statement continued. “We repeat our statement for 2025: we will continue to race in MotoGP!”
Yet there was no mention of beyond 2025. Withdrawing after next season would be problematic on two fronts: its four MotoGP riders—Pedro Acosta, Brad Binder, Maverick Viñales and Enea Bastianini—are all contracted until the end of 2026.
More pertinently, KTM also has committed its participation in MotoGP with series promoters Dorna until the end of the same year, which will be the last with the current technical regulations. The company would have to pay a hefty fine to pull out of the deal prematurely.
By committing to racing for 2025, it appears KTM has given themselves a brief period to find external investors that could help them carry on racing as they want.
Links have been made with an investment group that includes Formula 1 legend Lewis Hamilton, as well as Red Bull taking over the racing project completely. But a figure close to Red Bull believes the energy drink giant has no plans to buy out KTM’s racing operation.
Der Standard also reported KTM will have until the third week of January 2025 to receive offers from potential investors.
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