KTM/MotoGP is a separate financial entity!

We learned these days that KTM Racing AG, which is obviously based in Switzerland, which takes care of all competition at KTM, Cross, MotoGP, US Supercross, rally raid is in fact a financial entity independent of KTM, which is therefore in no way impacted by the problems of the parent company. This solution also existed for other brands, a way to protect themselves from the malicious curves of the industry, also a way to not integrate their colossal budgets into the company's accounts. In particular the sponsors' money, which we imagine to be pharaonic at the level of a team but which is a grain of rice in a debt which exceeds two billion… That said of course, in the event of the disappearance of the company ( the Austrian authorities are already saying that KTM is too important to disappear from the market, the story becomes national) there would obviously be consequences on the collateral financial entities, the proof is that the management of Enea Bastianini, who signed in full effervescence in March is today very worried, about the contract and especially about the quality of the parts that KTM can add to its competition motorcycles). The deadline is February 25, when the banks will agree to sit on 70% of their receivables, but when it's that or nothing… And then if the business picks up again, we will be able to rebuild… At fact, what triggered this insolvency? It seems to be a small supplier, with an unpaid debt of a few hundred thousand euros; However, for a small subcontractor, this kind of sum can be dramatic. Hence a contentious procedure which triggered the rest. Since the infamous Law affair (pronounced “lass” in old French, the man is Scottish) which was the first experiment with paper money in France, his bankruptcy in a few hours was three hundred years ago, we understand that capitalism has changed little…

The rest after this ad