MotoGP News: KTM Clears Air On Lewis Hamilton Purchasing Team Amid Financial Distress

Saajan Jogia | Dec 10, 2024

Oct 20, 2024; Austin, Texas, USA; Mercedes-AMG Petronas driver Lewis Hamilton walks the track ahead of the drivers' parade at the Formula 1 Pirelli United States Grand Prix at Circuit of the Americas. Mandatory Credit: Aaron E. Martinez-Imagn Images / Aaron E. Martinez/USA TODAY Network via Imagn Images

During the Abu Dhabi Grand Prix F1 season finale, a surprising rumor spread through the paddock that seven-time world champion Lewis Hamilton is reportedly exploring the possibility of purchasing KTM's MotoGP teams, including Red Bull KTM Tech 3 and the prestigious Red Bull KTM Factory Racing. This seemed quite believable, considering the financial distress the orange brand has been going through, and considering the British driver's interest in buying a MotoGP team.

A report confirms that KTM is grappling with significant financial difficulties, including liabilities totaling €1.8 billion and ongoing staff reductions. With production set to halt for two months in early 2025, speculation has grown that the company may require external investment to sustain its two MotoGP teams, which operate on an estimated annual budget of €40 million. Amid these challenges, rumors have surfaced suggesting Hamilton's potential interest in stepping in as an investor.

Despite the financial difficulties confronting Pierer Mobility AG, KTM has emphasized that its racing operations remain unaffected by the group's restructuring. The company has assured fans and stakeholders that its MotoGP test team will continue with its scheduled track sessions as planned this month.

However, what seemed to have fueled the speculation was the 39-year-old F1 driver's inclination to buy a MotoGP team earlier this year, given his love for the sport and considering its growth in recent years. He was quoted saying:

“I've always loved MotoGP.

“I'm interested in the potential growth of the sport. But I haven't looked that far into it, just yet.

“But anything is possible. I'm definitely interested, as I said before, about equity. The Denver Broncos was already a first step into team ownership.

“I think over the next five to ten years there will be a little bit more. We'll see.”

The rumors of Hamilton coming to the rescue soon reached the KTM bosses, who strongly ridiculed the reports. The team principal of GasGas Factory Racing Tech3 KTM told GPOne:

“These rumours are completely unfounded.

“There’s not a shred of truth in them. And I assume this also applies to the factory team.”

Another source at KTM reportedly said:

“Never in a million years."

Reports of Hamilton buying a MotoGP team might have gained pace after Liberty Media CEO Greg Maffei admitted in September that Hamilton had expressed interest in purchasing a MotoGP team. This development coincided with Liberty Media's acquisition of MotoGP from Dorna, a transaction valued at $4.2 billion. He said:

“When we announced [the acquisition on MotoGP], it's a great example, we had immediately people call up and say, ‘I want to buy a team’, including people like Lewis Hamilton.

“Why? Because they saw what had happened in Formula 1, and they want to follow. We had, major distributors call and say, ‘We want to be involved’. And unfortunately, I had to tell them we really can't talk about [that] until we get EU approval, but we'd love to talk once we get it.

“I think there's an opportunity when you're at the league level to take advantage of those changes that you can make. When you're at a team level, in general, teams don't cash flow as well. Not absolutely true. NFL teams cash flow pretty well, but in general, it's really big multiples of cash flow, and we're still too traditional in wanting that cash flow.

“But in addition, your ability to change the dynamics, to set the stage and do the things that you want are far better, far easier, more manageable. Still takes time, but you can get it done at the league level. In a way, it's very difficult at the team level.”