Calacus Monthly Hit & Miss – MotoGP Team KTM in crisis
Every month we look at the best or worst communicators in the sports world from the last few weeks.
KTM
It’s been a turbulent time for Austrian motorcycle manufacturer KTM.
It was revealed late last year that they were struggling as a business, with debts estimated to be as high as €3 billion.
The company has entered self-administration after cutting its board of directors from six to two members and has so far made 1800 employees redundant amid a 29% decrease in revenue from 2023, as well as cutting production by 26%.
One of the best-known names in the paddocks, Jeremy McWilliams, also had his contract terminated after 15 years of collaboration as a test driver and technical developer at the Austrian manufacturer.
Creditors had been putting pressure on the company to quit the championship to save costs, with a document previously released by a court in Austria stating that an exit was planned, without specifying a particular date.
KTM have implemented a 100-point restructuring plan to solve its financial problems, maintaining its commitment to MotoGP, while other manufacturers were reported to fear a potential departure from the championship could affect the prestige of the competition.
The manufacturer has stated that it “strives to maintain a policy of transparent, timely and comprehensive information and communication with the capital market participants and the general public.”
That’s a good position to take when the crisis is in the public domain. Too often, organisations want their owned channels to avoid mention of difficulties rather than give them the prevalence that they require.
A recent hearing in Austria revealed that 23 potential investors had expressed interest in KTM, with the company looking at a possible €900 million injection from various parties.
With an intention to compete in Moto GP in 2025, KTM have a responsibility to their fans, partners and the sport as a whole to continue business as usual, despite the financial storm clouds.
KTM has four bikes entered in MotoGP, having signed two high-profile riders in Maverick Vinales and Enea Bastianini alongside Pedro Acosta and Brad Binder,
That’s why KTM deserve so much credit for running a comprehensive launch ahead of this year’s Moto GP campaign, including all four of its riders across its two teams, alongside senior staff and KTM motorsport CEO Pit Beirer for media interviews.
It’s perfectly reasonable that the media were made aware that the speakers would not be discussing KTM’s finances, with the focus primarily on the Moto GP launch.
Only Beirer spoke about the financial challenges, but his answers were full and thorough, not evasive and clipped. He said: “It has been a rough winter. Only on December 20 last year was it confirmed that racing would remain part of the company as we move forward.
“There have been many questions but we have been clear since the last day of the 2024 season: we are here to race and we are very serious about success in this fantastic championship that spreads motorcycling and motorcycle racing to many corners of the world. 2025 has started strongly for us with the important Dakar victory and also winning in AMA Supercross, now it is a real pleasure to present our MotoGP teams and see our bike ready to race for the ninth year in a row.”
There were reports that KTM plan to exit Moto GP in 2026, which Beirer was quick to deny.
He added: “I strongly believe there will be a positive outcome. I can guarantee you we have a super strong plan for the future of this company. And it’s not just about one or two years of racing. We want KTM here forever. That includes our race department. That is for sure.
“In MotoGP, you cannot participate just to be there. You need to give everything to stay in the hunt with these great manufacturers. If you stand still for a year, you miss the train by, let’s say, one second, and then you drop from fighting for a podium to last place.”
“We’ve done our homework, we have a plan, we spoke with our sponsors, partners, and the board. We saved money where we could, but we never stopped developing our motorcycle. And as a bike manufacturer, that is our life insurance—to develop and provide the best motorcycles in the world.
“We want to come out strong in MotoGP. And not just start strong—we want to finish strong as well.”
In 2024, KTM finished second in the manufacturers’ standings, a long way off the dominant Ducati but comfortably clear of third-placed Aprilia.
Rider Pedro Acosta batted away attempts to address the finances and commented: “It’s not something I have to think about. That’s for the guys at the factory, for Pit, for management. Our job is to be fast on track. That’s the biggest help we can give—winning races.
"For me it's super clear that by no means...there was no pause at all in our steps to try and get closer to the front and fight for a championship."
Ducati won 19 out of 20 Grand Prix last year, and while KTM had a chance to secure sprints, the challenge to beat the dominant team remains.
Acosta added: "At the end we are improving a lot...let's see what's going with less Ducatis on track, with the stronger line-up of KTM of all times, let's see what's going on.
"At the end it's maybe [not a question for now], even before the winter test; let's see what's going on in Malaysia and then we can talk about it."
The future of the Austrian manufacturer will be decided on 25 February, when creditors will put a final vote on its insolvency plan, but if they communicate with investors as well as they have with fans and media, they’ll no doubt attract the backing they require.