Is KTM on the Brink of Withdrawal from MotoGP?

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Wow if you think KTM is trouble, check out the shape that VW is in at the moment. VW has the largest corporate debt of any company in history, more than 300 billion dollars, with 35,000 employee terminations apparently in the cards over time. Could Ducati be the next company to face the axe ?

Ducati Motor Holding S.p.A is an Italian motorcycle manufacturing company headquartered in Bologna, Italy. The company is directly owned by Italian automotive manufacturer Lamborghini, whose German parent company is Audi, itself owned by the Volkswagen Group.
None of Ducati's production facilities are in Saxony so they should be good.
 
It would be interesting to know the conditions around the investment. How one thinks they can make a profit out of a company with 2 billion debt will be questionable
I'm sure it would be a complicated formula, and not just taking over the company as is.

While I could see Hamilton taking over an independent team, I can't see him taking over a factory team and continuing to produce their own bikes. But, it could be that he's just one partner or even a figurehead for another entity, such as Red Bull, taking over.

Wow if you think KTM is trouble, check out the shape that VW is in at the moment. VW has the largest corporate debt of any company in history, more than 300 billion dollars, with 35,000 employee terminations apparently in the cards over time. Could Ducati be the next company to face the axe ?

Ducati Motor Holding S.p.A is an Italian motorcycle manufacturing company headquartered in Bologna, Italy. The company is directly owned by Italian automotive manufacturer Lamborghini, whose German parent company is Audi, itself owned by the Volkswagen Group.

As mentioned above, Ducati sells a load of bikes.

2022 was Ducati's best ever year that far, with over 1 billion Euros of turnover, and a 109 million Euro profit in 2022. https://www.ducati.com/ww/en/news/d...ros-revenue-for-the-first-time-in-its-history The figures I have for 2023 say 112 million Euros profit, and over 58,000 bikes sold. https://www.ducati.com/ww/en/news/d...itability-and-revenue-above-one-billion-euros

But, it looks as if 2024 may not be quite so good. DUCATI Global Sales - Data & Insights 2024 | MotorCyclesData

However, overall Ducati looks to be in rude health, and even if the worst happened to the Volkswagen group, which I don't think will happen, I'm sure there would be lots of organisations interested in Ducati and continuing the racing team as well (which I'm sure has contributed to their profitability overall).

It could be that with Ducati looking very much profitable even if figures are down this year, that KTM could be of interest to organisations wishing to have a base from which to emulate that success. KTM has sales way, way, in excess of Ducati, so what is happening to make them unprofitable? More detail on those record KTM sales figures I've seen it said before that it was too much aquisition of other products (such as MV Augusta). It seems that the brand has value, but something has gone wrong.
 
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I'm sure it would be a complicated formula, and not just taking over the company as is.

While I could see Hamilton taking over an independent team, I can't see him taking over a factory team and continuing to produce their own bikes. But, it could be that he's just one partner or even a figurehead for another entity, such as Red Bull, taking over.



As mentioned above, Ducati sells a load of bikes.

2022 was Ducati's best ever year that far, with over 1 billion Euros of turnover, and a 109 million Euro profit in 2022. https://www.ducati.com/ww/en/news/d...ros-revenue-for-the-first-time-in-its-history The figures I have for 2023 say 112 million Euros profit, and over 58,000 bikes sold. https://www.ducati.com/ww/en/news/d...itability-and-revenue-above-one-billion-euros

But, it looks as if 2024 may not be quite so good. DUCATI Global Sales - Data & Insights 2024 | MotorCyclesData

However, overall Ducati looks to be in rude health, and even if the worst happened to the Volkswagen group, which I don't think will happen, I'm sure there would be lots of organisations interested in Ducati and continuing the racing team as well (which I'm sure has contributed to their profitability overall).

It could be that with Ducati looking very much profitable even if figures are down this year, that KTM could be of interest to organisations wishing to have a base from which to emulate that success. KTM has sales way, way, in excess of Ducati, so what is happening to make them unprofitable? More detail on those record KTM sales figures I've seen it said before that it was too much aquisition of other products (such as MV Augusta). It seems that the brand has value, but something has gone wrong.
It’s possible that VW could do something generic to decrease short term spending like pull out of all Motorsports but it’s most likely they will leave Ducati alone.

The 4.5% drop in sales isn’t that bad considering the reduction in discretionary spending world wide
 
This article is mainly about whether Lewis Hamilton will invest in KTM. But, I think importantly, it seems that somewhere on paper are plans for KTM to withdraw from all of: MotoGP, Moto2, and Moto3. As the article says, that could change in the future. But, it seems that those plans are currently on the table.


After the initial creditors’ hearing, the company has been allowed to continue operation in its current form. But part of the report stated that an exit from MotoGP - as well as Moto2 and Moto3 - “is planned”.
 
This article is mainly about whether Lewis Hamilton will invest in KTM. But, I think importantly, it seems that somewhere on paper are plans for KTM to withdraw from all of: MotoGP, Moto2, and Moto3. As the article says, that could change in the future. But, it seems that those plans are currently on the table.

Sounds like a condition of Hamilton’s cash injection is the continuation of MotoGP. I’ll guess they will take the path of least expense
 
KTM’s MotoGP exit set to take place in 2026 amid insolvency proceedings

I read this as end of 2025. If so, that's going to cause chaos in the MotoGP rider market. I also fear it's going to decimate Moto3.
From tge article:

"The management expects “significant PR damage” in case KTM is forced to terminate its MotoGP programme early, and hence the company does not want to pull out of the championship until 2026."

The contracts runs from 2022 through 2026 so they should remain for two more years.
If they don't resume development these two years will be very long though. Pedro isn't gonna wait until 2026 to look elsewhere.
 
It's sad that MotoGP finds itself in this situation (again). Like I said when Suzuki departed, companies can make any excuse under the sun for withdrawal, but the real reason will always be that MotoGP costs far more than the revenue it generates for the manufacturers.

Fans look at the empty stands in Superbike, and they often conclude that the series is on the brink of collapse. However, Superbike could run in perpetuity with the revenue-sharing Dorna provides to MotoGP teams.

It will be interesting to see how Liberty interpret the situation. Do they lay the blame on aero and ride-height and hope that the 2027 formula can correct MotoGP's heading? Or will they take more drastic measures? Assembling the pieces in the correct orientation will be difficult, but it seems undeniable that the motorcycle industry cannot actually sustain MotoGP, WSBK, Endurance, and a patchwork of national motorcycle racing series.
 
It's sad that MotoGP finds itself in this situation (again). Like I said when Suzuki departed, companies can make any excuse under the sun for withdrawal, but the real reason will always be that MotoGP costs far more than the revenue it generates for the manufacturers.

Fans look at the empty stands in Superbike, and they often conclude that the series is on the brink of collapse. However, Superbike could run in perpetuity with the revenue-sharing Dorna provides to MotoGP teams.

It will be interesting to see how Liberty interpret the situation. Do they lay the blame on aero and ride-height and hope that the 2027 formula can correct MotoGP's heading? Or will they take more drastic measures? Assembling the pieces in the correct orientation will be difficult, but it seems undeniable that the motorcycle industry cannot actually sustain MotoGP, WSBK, Endurance, and a patchwork of national motorcycle racing series.
I assume Liberty will make it more appealing for manufacturers by sharing the income from the money generated by streaming, tickets, merchandise etc. controlling costs is one thing but sharing the series sharing the costs with the manufacturers should make it much more attractive to brands or independent teams IMO.
Increasing revenue streams, which they are no doubt intending to do will up the fees that sponsors are expected to pay due to more eyeballs being on their brands, further offsetting costs.
 
Perhaps end 2026 is the cheapest point to leave MotoGP. Spend as little as possible while continuing to get red bull money and avoiding penalties for broken contracts
I am also concerned with the fire sale that has begun (at least where I live) to get rid of all the unsold bikes, perhaps many dealers will drop the brand making it difficult to get parts and service.

New RC390s for $ 4100 US (plus tax, etc.) here where I live.
 
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Hope Pedro can get the hell out of there quick smart. Put him on a Duke and watch him fly.
However it has now got the point where the superiority of the Ducatis is a problem. They appear further ahead in terms of race pace compared to any other manufacturer that I can recall at any other time I have watched. Yes Marc was fast in '14 and won a heap but it was basically him ahead of everyone else. Earlier Mick won a lot but the bike wasn't so much better. Now it is just Ducati that has the race pace. That looks set to continue until the rule change at least.
 
It's sad that MotoGP finds itself in this situation (again). Like I said when Suzuki departed, companies can make any excuse under the sun for withdrawal, but the real reason will always be that MotoGP costs far more than the revenue it generates for the manufacturers.

Fans look at the empty stands in Superbike, and they often conclude that the series is on the brink of collapse. However, Superbike could run in perpetuity with the revenue-sharing Dorna provides to MotoGP teams.

It will be interesting to see how Liberty interpret the situation. Do they lay the blame on aero and ride-height and hope that the 2027 formula can correct MotoGP's heading? Or will they take more drastic measures? Assembling the pieces in the correct orientation will be difficult, but it seems undeniable that the motorcycle industry cannot actually sustain MotoGP, WSBK, Endurance, and a patchwork of national motorcycle racing series.
While I agree with everything in this post, I think KTMs issues are little to do with the cost of MotoGP. It's buying up company after company that is now failing because people are not buying those types of bike anymore.
 
While I agree with everything in this post, I think KTMs issues are little to do with the cost of MotoGP. It's buying up company after company that is now failing because people are not buying those types of bike anymore.

I agree, but withdrawing from MotoGP does not generate cost-savings, if the series is paying for itself. If anything, cancelling a self-funding marketing program would cause a substantial net loss over time, and I doubt a conservator or bankruptcy judge would advise it.

If it cost $20M to run a competitive manufacturer team, and Dorna paid $20M, and the teams courted sponsor money to gain a competitive edge, no one would withdraw from MotoGP. As it stands, MotoGP probably costs $25M at a minimum ($40M-$50M for the big spenders), and Dorna is supposedly paying around $12M-$15M for a 4 bike operation. That's not an insignificant contribution, but the formula costs far more than the money it generates.

Professional motorsports series cannot rely on shareholder charity, if they want a consistent product to sell to the TV people and streaming audiences.
 
I agree, but withdrawing from MotoGP does not generate cost-savings, if the series is paying for itself. If anything, cancelling a self-funding marketing program would cause a substantial net loss over time, and I doubt a conservator or bankruptcy judge would advise it.

If it cost $20M to run a competitive manufacturer team, and Dorna paid $20M, and the teams courted sponsor money to gain a competitive edge, no one would withdraw from MotoGP. As it stands, MotoGP probably costs $25M at a minimum ($40M-$50M for the big spenders), and Dorna is supposedly paying around $12M-$15M for a 4 bike operation. That's not an insignificant contribution, but the formula costs far more than the money it generates.

Professional motorsports series cannot rely on shareholder charity, if they want a consistent product to sell to the TV people and streaming audiences.
I read that KTM racing budget is around 70 million euros per year, not sure if that is across all types of racing or just MotoGP,
 
I read that KTM racing budget is around 70 million euros per year, not sure if that is across all types of racing or just MotoGP,
That’s probably what KTM pays in addition to sponsorship revenue

If sponsorship alone paid for MotoGP then Suzuki wouldn’t of left and we would see teams not associated with motorcycle manufacturing such as Illmore
 
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