Fresh reports from Austrian media indicate that KTM plans to withdraw from MotoGP under its current restructuring process by 2026. The decision is part of a broader financial overhaul driven by the company’s deepening financial troubles, which have led it to enter self-administration in a bid to avoid bankruptcy. Sources suggest that KTM is facing debts exceeding €3 billion, which has prompted the company to take drastic steps to regain financial stability.
KTM’s entry into self-administration follows a series of financial struggles, which escalated in recent months. The company sought to stave off bankruptcy by restructuring its operations and looking for ways to reduce its substantial debts. The first creditors’ hearing took place earlier this month, during which the company was granted permission to continue with its restructuring plans. This has allowed KTM to carry on in its current form for the time being.
However, the restructuring process comes with significant changes, including a “planned” exit from MotoGP. The Alpine Creditors Association (AKV) published a report following the first creditors’ meeting, which revealed that KTM’s participation in the premier motorcycle racing series would likely end in 2026. This exit would mark the final year of KTM’s current contract with Dorna Sports, the governing body of MotoGP.
In response to the leak about its future in MotoGP, KTM issued a statement confirming its commitment to racing in 2025. However, the company refrained from commenting on its plans beyond that year. This ambiguity has sparked widespread speculation about the company’s future in the sport, with many questioning whether it will follow through on its planned exit in 2026.
A report from Austrian media outlet Der Standard on December 29th states that KTM is preparing to end its MotoGP involvement in 2026. The report also suggests that KTM’s management is concerned about the potential “significant PR damage” that could result from a premature exit from the championship before the end of their current contract. Despite this, it appears that the company is focused on reducing its financial burden and restructuring its operations in line with its long-term survival.
KTM currently has a strong rider lineup, including Brad Binder, whose contract extends until the end of 2026. Other riders such as Pedro Acosta, Enea Bastianini, and Maverick Viñales have signed multi-year contracts, which means that KTM will have to navigate the complexities of these agreements if they follow through with their planned exit from MotoGP. It remains to be seen how these rider contracts will be managed, as the company is expected to make significant changes to its operations in the coming years.
Despite the uncertainty surrounding KTM’s MotoGP future, analysis from the Boston Consulting Group suggests that the company’s long-term prospects are positive. The report highlights that KTM could save approximately €46 million annually by discontinuing its grand prix program, which would provide significant relief to its financial situation.
KTM has also attracted interest from several parties looking to invest in the company. During the first creditors’ hearing, it was revealed that investors had expressed interest in contributing up to €700 million to help the struggling brand recover. One of the most notable potential investors is seven-time Formula 1 world champion Lewis Hamilton. In a recent interview with Speedweek, KTM’s motorsport boss, Pit Beirer, confirmed that the company had held “concrete” discussions with Hamilton’s management about a potential buy-in, as the British driver looks to expand his involvement in motorsport beyond F1. Earlier in the year, Hamilton had been linked with a potential investment in the Gresini MotoGP team, and he has reportedly shown interest in getting involved in MotoGP under the ownership of Liberty Media, the parent company of Formula 1.
As KTM’s restructuring process continues, the company faces a crucial deadline. Investors have until the third week of January to submit their offers, with the funds vital for meeting the debt repayment requirements outlined in KTM’s restructuring plan. The company’s creditors will vote on the proposed restructuring plan at the end of February, and this decision will determine KTM’s financial future and whether the company can continue its operations in their current form.
In conclusion, KTM’s future in MotoGP is uncertain as it navigates through a severe financial crisis. While the company is committed to racing in 2025, its planned exit from the sport by 2026 signals a major shift in its strategy. With the restructuring process ongoing and potential investors on the horizon, KTM’s ability to recover from its financial difficulties will likely play a crucial role in determining its future in MotoGP and beyond.
