The renowned Austrian brand KTM will exit MotoGP and other sports in 2026 amid financial struggles. The brand is now under self-administration by Austrian law and is now looking for new investors to help them recover from the crisis. Last month speculations emerged that KTM could potentially exit the sport, and it was stated that “In order to reduce costs, the exit from MotoGP, Moto2, and Moto3 is planned.” But KTM said that they will race in the 2025 season and beyond that will be decided by the board members.
Pulling out of the 2025 MotoGP season will hugely affect the brand value, and it was decided that they will stay this season. KTM drivers Pedro Acosta, Brad Binder, Maverick Vinales, and Enea Bastianini all have contracts until the end of the 2026 season. The brand also has a contract to compete in MotoGP until the same year. They are now in talks with many potential investors, including Formula 1 world champion Lewis Hamilton, to rescue them from crisis. KTM has spent most of their revenue in Motorsport, with expenses mounting to 95 million euros in 2023.
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KTM's financial struggles
Over the last two years, the brand has had to pay 250 million euros, and due to payment difficulties, the brand has been under self-administration since 29 November. They have debt of up to 3 billion euros, for which they are looking into brands like Bajaj Auto and Red Bull.
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Failing to pay by January 31 will complicate the matter. Around 3600 employees in Austria could be directly affected. They haven't received their November wages and Christmas bonus, which they get every year. KTM has assured that the workers will get their salaries in the middle of January.
Red Bull KTM finished second in the constructor's championship after Ducati in the 2024 season, and they are seen as the potential team to challenge the Italians for the title. But now, with their financial crisis, their dream of winning the MotoGP title is moving far away, and we don't see any light at the end of the tunnel.
Also read: Is KTM planning to exit MotoGP due to financial struggles?
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