December 2024

KTM, Insolvency, And MotoGP - What We Know, And What Happens Next

By David Emmett |

KTM's financial difficulties continue to cause headlines, with the group owner Pierer Mobility Group filing for bankruptcy protection on Friday. There have been a number of developments since then, including reports of a development pause over the winter for the MotoGP project. So here is a summary of where things stand as of today. Before reading this, it would be helpful to read the previous story I wrote on KTM's financial issues.

What's going on?

On Friday, Pierer Mobility Group, the parent company of KTM, filed bankruptcy protection procedures (under Austrian law, judicial restructuring proceedings with self-administration) for three of its subsidiaries:

  • KTM AG, the motorcycle division comprising the brands KTM, GASGAS, Husqvarna, and MV Agusta
  • KTM F&E GmbH, a separate company which houses KTM's R&D department
  • KTM Components GmbH, another separate company which produces a range of parts for KTM.

Why did KTM do this?

KTM Update: MV Agusta Stake To Be Sold, FMA Investigates Reporting Failures, Pierer Seeks Financing Support

By David Emmett |

There are more financial problems building for KTM's parent company Pierer Mobility AG. According to the excellent and comprehensive reporting of Gerald Dirnbeck at Motorsport-Total.com, several things have happened.

  • The administrator appointed to oversee the bankruptcy proceedings has forced PM AG to sell its holding in MV Agusta
  • Pierer Mobility Group has called in the assistance of Citibank to help with an "ownership restructuring" and find financing
  • Austria's Financial Market Supervision authority has opened an investigation into whether the Pierer Mobility Group informed investors in a timely fashion about its financial problems
  • 50 more jobs at risk at KTM

Sale of MV Agusta

MotoGP To Return To Goiânia In Brazil From 2026

By David Emmett |

MotoGP is to make a return to Brazil for the first time since 2004. The Goiânia International Racetrack Ayrton Senna, near the capital Brasilia, is to host a race from 2026, with the circuit signing a five-year deal to host a race.

The news broke in Brazil last week, with the official announcement coming today. It is unclear whether Brazil will take the place of Argentina, or whether it will be added as a second round in South America. It underlines South and Central America as a key market  for the MotoGP manufacturers, as well as for Dorna.

EU Launches Phase II Investigation Of Liberty/Dorna Deal, Purchase Delayed

By David Emmett |

The EU Competition Commission has launched a so-called Phase II investigation of Liberty Media's purchase of Dorna Sports. The Commission raised concerns over the market power the proposed purchase would give Liberty over broadcasting rights in the national TV markets in a number of EU member states.

The concern of the Commission is that the acquisition could allow Liberty to raise prices for the broadcasting rights of MotoGP and F1 in some countries. The Commission noted that F1 and MotoGP are each other's most direct competitors, and Liberty having control of both would reduce competition by not allowing broadcasters to choose between one or the other, or both. 

KTM Can Continue In Current Form, €700 Million Lifeline Found

By David Emmett |

KTM's initial restructuring plans have been approved by the insolvency administrator at the first court hearing held to discuss the process. The company can continue with its process of self-administration until the next hearing, on January 24th. KTM has also found investors prepared to inject €700 million into the company to keep it running.

According to Austrian broadcaster ORF, basing its reporting on the Austrian Press Agency APA, the court in Ried im Innkreis has approved the proposal by the insolvency administrator. ORF cites KSV insolvency expert Karl-Heinz Götze, who said that KTM can continue in its present form under Austria's self-administration process for bankruptcy protection.

KTM Deny Plan To Pull Out Of MotoGP, Moto2, Moto3 - UPDATED

By David Emmett |

According to the report from the AKV agency on KTM's insolvency hearing held in Ried im Innkreis today, as one of the proposed cost-cutting measures, KTM is to withdraw from MotoGP, Moto2, and Moto3. Among the measures to be taken are the following:

Um Kosten zu reduzieren, ist der Ausstieg aus MotoGP Moto3/Moto2 geplant.

Translation: To reduce costs, a withdrawal from MotoGP, Moto3/Moto2 is planned. 

It is worth pointing out that a timeframe for a planned withdrawal is not mentioned.

The AKV is the agency charged with handling the debts owed by KTM to its creditors, and was represented in court at the insolvency proceedings.

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