KTM have made decision on Lewis Hamilton investment proposal amid MotoGP financial crisis

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KTM are in a desperate financial crisis that has put their future in MotoGP into serious doubt.

The Austrian manufacturer are in self-administration after accumulating debts of around £2.5bn. The situation has left them facing the prospect of leaving MotoGP as early as 2026.

The factory KTM team and their satellite outfit Tech3 will unveil their bikes for the 2025 season on 30 January, seemingly confirming their entry for this season in the premier class.

But beyond 2025, the company is at risk of closing its doors. KTM couldn’t even pay their staff on time at the end of last year.

Lewis Hamilton’s investment proposal to save KTM ‘will not materialise’

KTM motorsport director Pit Beirer is desperately trying to find a solution to the manufacturer’s woes. They must find investment from other parties to save their operation.

Beirer had previously confirmed talks with seven-time Formula 1 champion Lewis Hamilton, who is keen to invest in the world of MotoGP.

The 39-year-old was said to be in advanced talks over a potential deal. Hamilton’s move to Ferrari would not be an issue as his deal with Monster Energy – the rivals of KTM’s main sponsor Red Bull – expired after his departure from Mercedes.

However, according to a report from Autosport, it is now understood that Hamilton’s deal to save KTM ‘will not materialise’.

This is due to KTM’s ‘goal’ being ‘for whoever takes control to inject capital to save the entire company’ and not just its racing operation.

KTM may have to rely to Liberty Media’s deal to take over MotoGP collapsing

KTM have already cut several jobs within their organisation and are struggling to pay those who remain on time. But their financial crisis is also damaging in a sporting sense, given their two exciting rider line-ups in 2025.

The factory KTM team have just welcomed Pedro Acosta to partner Brad Binder. The Spaniard is a rising star in MotoGP being just 20 years old, having achieved five podiums and his first pole position last season.

The satellite Tech3 team will have Enea Bastianini and Maverick Vinales as their pairing, as the duo move from being respective Ducati and Aprilia factory riders. The French-based team now have two experienced riders capable of fighting for regular wins.

KTM’s ongoing situation could not come at a worse time given the things they are doing in preparation for 2025. KTM may need Liberty’s takeover of MotoGP to fall through as Dorna could – in theory – inject money into them with the compensation fee they will receive.