KTM financial woes leave Brad Binder’s MotoGP future unclear

South African rider Brad Binder’s MotoGP future with KTM looks uncertain with his team reportedly set to quit the sport after 2025 to prevent bankruptcy.

The debt-ridden Austrian motorcycle brand entered self-administration on November 29 and Austrian media has reported that KTM may quit the top tier of motorcycle racing in 2026 as part of efforts to restructure its business.

The company’s sales fell 27% compared to the first half of 2023 and it laid off nearly 600 workers in 2024. The self-administration allows for 90 days for KTM’s holding company Pierer Mobility — which also owns motorcycle brands Gas Gas, Husqvarna and MV Agusta — to secure financing to continue operations before the company falls into insolvency.

According to Crash.net, the first creditors’ hearing took place in December and a report issued by the Alpine Creditors Association (AKV) noted that reorganisation measures include the “planned” exit by KTM from MotoGP. KTM responded by saying it was committed to racing in MotoGP in 2025 but did not comment on its racing plans beyond that.

Austrian outlet Der Standard reported that KTM’s MotoGP exit will come in 2026, which is the final year of its deal with commercial rights holder Dorna Sports.

According to Crash.net, the report from the creditors’ hearing revealed that a number of parties have expressed interest in investing a combined €700m into the struggling company, including seven-time Formula One champion Lewis Hamilton. Hamilton, who is moving from Mercedes to Ferrari for the 2025 Formula One season, had earlier been linked with a buy-in of the Gresini MotoGP team.

Binder has a contract with KTM to the end of 2026 while new signings Pedro Acosta, Enea Bastianini and Maverick Vinales are all on multiyear deals. KTM also supplies 16 motorcycles to the entry-level Moto3 series.

Binder won the 2016 Moto3 title to become the third motorcycle grand prix world champion from South Africa, after Jon Ekerold and Kork Ballington. The Potchefstroom-born rider has been with the MotoGP factory team since 2020 after three seasons in the intermediate Moto2 category with KTM.

In his third MotoGP race he won the 2020 Czech Republic grand prix to bring the Austrian marque its first victory in the premier class, and the following year he won the team’s home race in Austria.

Binder has failed to win a MotoGP since then against the dominant Ducatis, but has scored nine podiums, won a number of sprint races, and finished as the highest-placed non-Ducati MotoGP rider in the last two seasons.