KTM MotoGP future in doubt as debt crisis deepens

KTM’s financial struggles raise concerns over MotoGP future despite creditor deal.

Brad Binder of South Africa and Red Bull KTM Factory Racing is pushed back to the pit lane by track marshals during the qualifying session of the MotoGP Thailand Grand Prix at Buriram International Circuit in Buriram on October 26, 2024. Photo by Lillian Suwanrumpha/AFP

By Anna Fadiah and Hayu Andini

KTM’s MotoGP future remains uncertain despite a major breakthrough in addressing its mounting financial troubles. The Austrian manufacturer, burdened with €2 billion in debt, has reached an agreement with creditors to pay 30% of the money owed by May 2025, a move that has temporarily secured its operations.

While this deal has given KTM some breathing room, analysts warn that the underlying financial crisis could still have severe consequences for the company and its MotoGP program.

“The last step was important because the creditors could have shut everything down,” TNT Sports’ Sylvain Guintoli explained.

“They still have to find more money, and investors.

“We know racing in MotoGP is not cheap. The last thing we want to see is four bikes less, and we’ve seen it before with Suzuki when the company was not in such trouble.

“We hope to see a solution. It would be a shame, they have done a fantastic job so far in MotoGP.

“Pedro Acosta has immense talent and is leading the project with Brad Binder.

“They are so close, they have developed the bike further for this year. Hopefully, they can put their plan back together.”

MotoGP investment concerns loom over KTM’s future

Despite the short-term financial relief, former MotoGP rider Neil Hodgson remains skeptical about KTM’s long-term viability in the championship.

“You have got to keep investing money non-stop,” Hodgson said.

“Look at Yamaha, essentially buying the Pramac team then giving them everything for free.

“It never ends, the investment, if you want to have a chance of competing at the front of MotoGP.

“My gut feeling – and I’ve only read what you’ve read – I can’t see a happy ending.

“They are in so much debt, they need a miracle.

“I know the creditors agreed to accept 30%, but still, so much needs to happen.

“BMW? They are only rumors. The debt is so big, everyone is struggling, times are hard. Bike sales are down. KTM have a billion Euros of unsold motorcycles.

“It’s a long journey ahead. I don’t see how it can’t affect the MotoGP team, it must affect them!”

Riders downplay impact of financial crisis

Despite the growing concerns, KTM’s riders have maintained that the financial crisis is not affecting the racing team.

Pedro Acosta, who endured a disappointing start to his MotoGP career with a 19th-place finish in the season-opening Thailand Grand Prix, has insisted that the situation is not as dire as it appears.

His teammate, Brad Binder, has also downplayed the impact of the financial struggles on KTM’s racing operations.

However, Guintoli believes this could be a strategic attempt to keep morale high within the team.

“If you want to keep people motivated, when they visit you to understand the situation, you will be extra positive,” Guintoli said.

“You spin it, ‘things aren’t that bad, don’t worry.’

“Riders need a clear mind, and their eyes on the prize.”

Hodgson added that KTM faces additional complications if it were to exit MotoGP prematurely.

“There are also huge penalties if KTM pull out now, so that plays a part,” Hodgson explained.

“If they say they’ve got to stop, it’s tens of millions.”

Development continues despite uncertainty

Amid the uncertainty, Michael Laverty has offered a more optimistic outlook, pointing out that KTM has not reduced its MotoGP development efforts.

“They haven’t slowed down their development in terms of the race program,” Laverty said.

“I hope they give Acosta the tools to battle Ducati. There are positive signs out of KTM.”

With the 2025 season underway, KTM faces mounting pressure to stabilize its financial position while maintaining its competitiveness on the track. Whether the team can navigate this crisis without affecting its MotoGP ambitions remains to be seen.