KTM CONFIRM EXIT FROM MOTOGP and Dani Pedrosa Test contract in jeopardy.
KTM has officially announced its exit from MotoGP and all associated racing categories by 2026. It’s a move driven by sheer necessity, as the company grapples with a staggering €440 million liquidity gap, a backlog of unsold bikes, and mounting financial woes.
This announcement marks a dramatic shift from the defiant tone of KTM MotoGP boss Pit Beirer, who had previously shot down rumours of a withdrawal. While KTM initially labelled it a “pause,” the reality of their economic predicament has turned this into a permanent goodbye.
AKV, the restructuring firm managing KTM’s financial recovery, explained the decision:
“It is planned not to extend the contract with MotoGP, which runs until 2026. An early withdrawal from the racing series is not currently planned. The reason for this is the reduction in costs for KTM AG and its subsidiaries.”
By committing to stay until 2026, KTM avoids the backlash of an abrupt exit, while saving face by fulfilling existing rider contracts, however the €600,000 annual wage that test pilot Dani Pedrosa currently commands may also now be in consideration for termination in order for the 2025 season to continue.
The financial upside? Shedding MotoGP participation trims an estimated €46 million from KTM’s budget.
As the MotoGP paddock prepares for a grid without one of its fiercest competitors, the sport itself faces a new reality, with KTM’s exit reshaping its competitive landscape And possibly allowing BMW to enter.
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