I wont be the least bit surprised if this is true. KTM has been threatening this for a few years and is the reason that the E3 class was dropped last year.
KTM will still be in the EWC. Just as privately run teams.
I honestly think that EWC is doomed. The events are too costly to run and ROI is brutal. After being involved in 2 World rounds back in 06/07 I can tell you they arent money makers.
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