KTM $$$ money shift

[Fred1956]

This was posted on our state series' board by our contingency chairman under the heading-
'No KTM contingency for 2013'
I got a phone call from my KTM rep yesterday and then an email today. I am passing along the email.

"As I mentioned on the phone KTM has reduced the number of offroad series per region. For 2013 some of the contingency focus has shifted to MX in hopes of increasing our motocross market share. We are not giving up on our offroad supporters that have bled orange since the beginning. However offroad budgets have been reduced and I was forced to analyze each offroad organization to determine which one would improve KTM sales the most. The AHSCS has a strong KTM showing and my focus has to be on areas of weak KTM market share. To accomplish this I look at total attendance vs KTM riders. My focus was to sponsor a series with the highest attendance and fewest KTM racers with the hopes that contingency can improve that number.

I will keep AHSCS on my radar for 2013 with the possibility of adding to the 2014 contingency."

[singletracker]

Offroad is becoming the redheaded step-child of motorcycle racing. First Suzuki then Kawi and now KTM.

[MotoAdventure GasGas]

Be careful lumping Kawasaki in with the other fellas. They are disbanding their factory team, but are still supporting the sport. We have 2 of our 5 Team Green sponsored riders for 2013 as offroad enduro racers, not MX'ers. And as far as we know, contingency will still be paid for enduro events, where as the big Orange monster is stating explicitly that they are dropping all money for the offroad side. We do wish that the Japanese would build some off-road bikes like we know they could, but in the mean time, I'll keep riding my Gasser.

[singletracker]

I was referring to them dropping their factory team in order to pay the high salaries required of the MX stars. To me it shows that they are switching their resources around as well.

[tm_enduro]

I suspect that we will see KTM offroad $$$ shifted to Hbg. Lafferty and Bobbitt have signed for 2013. I expect offroad contingencies to go to the blue / yellow bikes.

[jpelaston]

Originally Posted by tm_enduro

I suspect that we will see KTM offroad $$$ shifted to Hbg. Lafferty and Bobbitt have signed for 2013. I expect offroad contingencies to go to the blue / yellow bikes.

Husaberg is where they are putting guys as a last chance. Bobbitt had a 2 year deal with KTM. They moved him to berg to make room for Baylor. If he doesn't win a lot this year, he will be following Fahringer right off the team.

[ScottyR]

Originally Posted by jpelaston

Husaberg is where they are putting guys as a last chance. Bobbitt had a 2 year deal with KTM. They moved him to berg to make room for Baylor. If he doesn't win a lot this year, he will be following Fahringer right off the team.

This is correct. I have it from a very good source that Bobbitt could either ride a Berg in 13 or nothing. If he isnt a top 2 rider next year he will be walking.

[celler]

"My focus was to sponsor a series with the highest attendance and fewest KTM racers with the hopes that contingency can improve that number. "

This makes total sense to me. I'm actually surprised KTM/Husaberg continues to sponsor as many riders as they do. They dominate offroad market share. I would guess they believe that the current level of spending can maintain and grow their market position. I believe their brand and dealer network is strong enough in offroad that they could actaually spend less and be just fine. I'm not in the motorcycle industry but as a customer I'm not buying a bike because of a large factory race effort. I do think for development reasons a factory race effort is important.

Clay has stated he sponsors people that sell bikes. That is what it is about. The motorcycle business is tough to make money in. I sort of like it that the Japanese are doing such a poor job undertstanding the offroad market because it has alowed the smaller companies like GASGAS and BETA to enter the market in bad times with bikes that are really built for a purpose. Before my GASGAS I converted Japanese MX bikes for 20 years. Innovation is not comming from Japan. Probably got off topic a little but I think it is all related.

[jpelaston]

Originally Posted by ScottyR

This is correct. I have it from a very good source that Bobbitt could either ride a Berg in 13 or nothing. If he isnt a top 2 rider next year he will be walking.

It will actually be good for Russ. When I talked to him last, he was really praising the PDS over the linkage. He spent most of the season trying to get the suspension working on his XC. Notice that the last two or three races, he was nearly unstoppable? He had spent a couple days at RidePG with Bart Hayes to dial the XC in. It was too little, too late. With the Berg having the PDS he will revert back to suspension he had been using two seasons ago.

[roostafish]

Originally Posted by celler

"My focus was to sponsor a series with the highest attendance and fewest KTM racers with the hopes that contingency can improve that number. "

This makes total sense to me. I'm actually surprised KTM/Husaberg continues to sponsor as many riders as they do. They dominate offroad market share. I would guess they believe that the current level of spending can maintain and grow their market position. I believe their brand and dealer network is strong enough in offroad that they could actaually spend less and be just fine. I'm not in the motorcycle industry but as a customer I'm not buying a bike because of a large factory race effort. I do think for development reasons a factory race effort is important.

Clay has stated he sponsors people that sell bikes. That is what it is about. The motorcycle business is tough to make money in. I sort of like it that the Japanese are doing such a poor job undertstanding the offroad market because it has alowed the smaller companies like GASGAS and BETA to enter the market in bad times with bikes that are really built for a purpose. Before my GASGAS I converted Japanese MX bikes for 20 years. Innovation is not comming from Japan. Probably got off topic a little but I think it is all related.

It's good business sense, and now that KTM owns the market share pretty much nation wide, adjusting their effort makes sense. I'm riding KTM this year because they did a demo day and I got to see in real time which bike worked best for me on the stopwatch. I'd be riding that bike, whether I had help or not. Good thing for me, the local KTM dealer is helping me. But bottom line, I got to ride the KTM, and thought I needed a big change to push me over the edge to qualify for the ISDE.
It is a big investment to do a demo day, but KTM sold every one of those bikes and then some. It was a big production, with a semi, and a forced evaluation. Plus, Mike Lafferty was on hand, and it felt like the staff was very interested in any critical feedback. If GG could pull off something even half that organized, the bikes would sell themselves. The Gas Gas is a great bike and deserves to be considered equally, unfortunately it seems that it takes big money to get the word out.