Is KTM on the Brink of Withdrawal from MotoGP?

Yes, VW is one of the biggest losers of the coming Tariff Wars, so wouldn't be surprised if the likes of KTM, Ducati and with them Aprilia, have reached their peak, being European based brands, and the Japanese are gaining momentum the next decade.

The monetisation of sports brings revenue and pushes the limit for the participants, so positive for those involved.
We become customers rather than fans. Has it's up and down sides.

Stefan Pierer has a net worth of $1.6B according to Forbes. Take the salary out of his pocket or assets, seeing as he is the one who is primarily to blame for this.

Acosta has visited the factory and executives, concerned about the MotoGP program.

Acosta feels "relieved" after visiting KTM's headquarters

I honestly think it's a bit tasteless. Even if KTM folded, Dorna would find him a ride elsewhere. What about the 800+ people who have either lost their jobs or have not been paid going into the most expensive time of the year for most families?

AnnoyingTwit said:

Once a sport achieves 'big bucks' status, it stops being a sport really. I disagree that football has avoided this, particularly in the UK where I live. I also don't think it was the change to 4-strokes that was the crucial factor. Even if that change hadn't been made, I think we would be in the same situation. I feel that the change to 4-strokes was to ensure some sort of match between what is being raced, and what is being sold, to keep the manufacturers engaged.

The crossing of the Rubicon point for me was when coverage was no longer widely available to all on free-to-air TV, but only via various subscription and paid sources. This creates the bigger revenue stream that makes sports a financial plaything, rather than real sport.

I still watch and enjoy MotoGP, but it is now something different from what it was decades ago. The same is happening to all sports. As soon as a sport becomes popular enough that people will pay significant amounts to watch it, eventually that will happen.

EDIT: KTM employees (unless this has changed) to go unpaid over Christmas. KTM workers to go unpaid over Christmas. It's going to be hard to justify a MotoGP team and their status as a constructor if their employees are having their paychecks delayed like this. If it continues to happen, even occasionally.

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It's true that even traditional sports are struggling to maintain their focus. As Liberty demonstrated with F1, the sporting contest can function as a content farm for social media and reality TV. The social media derivatives can reach more people than the sporting event itself and earn more money. The reality of immersive media is beginning to infect all sports, though motorsport, particularly, struggles to maintain focus, since the major participants earn their money from an unrelated business.

The ongoing issue, imo, is that motorsport suffers mercantile disease, but the sanctioning bodies are struggling to design better incentives. Wins and accolades are finite, and the economic culture of motorsport revolves around hoarding these wins and accolades......which inevitably diminishes their value and causes systemic collapse. Every series uses the same basic formula to fix the problem. They impose fiscal sanity on the participants to stop a race to the bottom, then they lock up vehicle performance with balancing or spec equipment. Fans become less fanatical. TV companies get bored and look elsewhere.

Why can't MotoGP survive when the same manufacturer wins year after year? Basically because the cameras never stop pointing at the front runners. Additionally, the formula requires the backmarkers to be an inferior version of the front-runners. They can't differentiate their product in a meaningful way. This is a problem, even in the BoP formula. WSBK only tolerates 4-cylinder engines. In LMP most of the prototypes are running a tightly control chassis that more or less requires a turbo V8. Anyway, someone else's problem. I don't get the feeling that any motorsports people take their industry seriously. It's just an ATM machine or a defensive strategy to thwart new manufacturers.

mikesbytes said:

VW owns Ducati

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VW is an oil tanker headed for shore. They've known for years they will hit the beach, imo.

I personally think this is why they had Ducati wreck GP with ride height, and it might explain the move to ditch their young talent for Marquez. VW want to maximize Ducati's value now so they can cash out.

Their Audi F1 team looks like it's beached before it even started.

Well.


KTM’s MotoGP project threatened by reorganisation measures

Well damn.
If I'm not mistaken there's a heavy fine if they withdraw before the end of 2026 though so I hope this effort will remain alive for another two years.

JFM01 said:

Well damn.
If I'm not mistaken there's a heavy fine if they withdraw before the end of 2026 though so I hope this effort will remain alive for another two years.

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IF they withdraw, my prediction is they either have a private set up run by someone like Red Bull (Hayate 2009 with Kawasaki). Or they just eat the cost and pull out. Any fine is going to be lower than the cost of racing for 2 more seasons.

Again, IF they withdraw, this is huge. I don't see Acosta or even Binder being left on the sidelines. Though I don't see anyone scrambling to get Mav or Enea a seat.

Apparently KTM have confirmed they ARE racing in 2025.

Creditors put pressure on KTM to withdraw from MotoGP​

Creditors put pressure on KTM to withdraw from MotoGP

#22 said:

Creditors put pressure on KTM to withdraw from MotoGP​

Creditors put pressure on KTM to withdraw from MotoGP

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It appears to me that KTM bikes will be on the grid in 2025, but it may be a shoestring effort (go with whatcha got), after 2025 who knows. It will be interesting to see the details of the restructuring plan early next year, it does not look good at the moment.

I believe KTM will withdraw from MotoGP, just a matter of when.

#22 said:

Stefan Pierer has a net worth of $1.6B according to Forbes. Take the salary out of his pocket or assets, seeing as he is the one who is primarily to blame for this.

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I saw a post on a KTM forum a few weeks ago where a poster made a claim that Pierer is basically strip mining KTM of all it's money and will probably dump whatever is left to a buyer like the Indians. He's been making himself rich in the process at the expense of all employees. A tale as old as time. Corporate greed and another billionaire piece of .....

JPSLotus said:

I saw a post on a KTM forum a few weeks ago where a poster made a claim that Pierer is basically strip mining KTM of all it's money and will probably dump whatever is left to a buyer like the Indians. He's been making himself rich in the process at the expense of all employees. A tale as old as time. Corporate greed and another billionaire piece of .....

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I read a quote relatively recently that I feel is relevant:

"If we went into the jungle, and found a troop of gorillas all starving to death, with the head Gorilla well nourished and hoarding all the Bananas. Scientists would study that Gorillia to see what was wrong with it. But, in the case of Humans, we would stick him on the cover of Time magazine"

Looks pretty likely that if KTM does race this year it will be on minimum budget so almost no development

If I was a KTM employee I’d be looking for my next job. If contractor I’ll assume that the contract won’t be extended

mylexicon said:

Why can't MotoGP survive when the same manufacturer wins year after year? Basically because the cameras never stop pointing at the front runners

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They use to go thru the field at some point in the race so most got a little TV coverage but seemed to of stopped that, now the back markers only get the look in when they crash

#22 said:

IF they withdraw, my prediction is they either have a private set up run by someone like Red Bull (Hayate 2009 with Kawasaki). Or they just eat the cost and pull out. Any fine is going to be lower than the cost of racing for 2 more seasons.

Again, IF they withdraw, this is huge. I don't see Acosta or even Binder being left on the sidelines. Though I don't see anyone scrambling to get Mav or Enea a seat.

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If KTM have gone bust then MotoGP will be one of the creditors and will get somewhere between bugger all and nothing

If I was a KTM contracted rider or race related staff then I'd be wondering if I will get paid

JFM01 said:

Well damn.
If I'm not mistaken there's a heavy fine if they withdraw before the end of 2026 though so I hope this effort will remain alive for another two years.

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mikesbytes said:

Looks pretty likely that if KTM does race this year it will be on minimum budget so almost no development

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I remember Kawasaki fulfilling the terms of their contract.

Acosta to Gresini? Not this year, but I could imagine Acosta being preferred to Alex Marquez and Fermin Aldeguer if Fermin doesn't step up and Marquez doesn't step up to a higher level. VR46 may be a possibility. Clearly Aprillia is there too. Not sure the Japanese teams will hit the front soon enough to be an option.

To put a more positive spin, all the employees have most likely both had the opportunity to develop in their field of expertise and been paid well, until November.

Now they will need to find employment elsewhere.

My 2p is on the majority of the KTM staff earning more per year than your average nurse at a home for the elderly, an elementary school teacher or a worker in a tomato field.

Good for Pit that he earned more. My guess would be that he'd change all his worth into the ability to walk again.

AnnoyingTwit said:

Not sure the Japanese teams will hit the front soon enough to be an option.

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They'd damn sure pay pretty well.
Toprak and Pedro at the Honda factory team in 2026, make it happen!