First Person/Opinion

By Michael Gougis

“I can only say that we have had very interesting conversations with his management. It is no secret that Lewis Hamilton is interested in MotoGP and is thinking about his own team. Here, too, there are concrete discussions.” Pit Beirer, KTM Motorsports Director, in an interview published by Speedweek.com on December 24th, 2024.

Rumors have been floated for months that seven-time Formula One World Champion Lewis Hamilton wants to purchase a MotoGP team. Until now, there were never credible sources attached to the rumors. Beirer’s comments are the most solid–and perhaps the first credible–indications that Hamilton may actually be actively seeking an ownership role in the MotoGP paddock.

KTM’s financial difficulties are well-known at this point, and while the company says it is going Grand Prix racing in 2025, an agency representing the company’s creditors says the plan is to pull out of “MotoGP Moto2/Moto3.” There is no timeline and no other details surrounding that assertion by the creditor agency.

Racing requires money, and KTM is actively seeking investors to help the company’s racing efforts. Beirer specifically chose the words “partner” and “investor” in the Speedweek article, because he views them differently than he does a sponsor. “An investor is something different than a sponsor,” he said. “When you have partners at the table to give you money for such a great project, then they get involved. Thus, it is clear that such people will have a certain say.”

So, what would Hamilton bring to the KTM racing project? And is Hamilton the suitor who will rescue KTM’s road racing efforts? Hamilton loves performance bikes. He’s ridden Valentino Rossi’s factory Yamaha YZR-M1 MotoGP machine and Yamaha factory-spec World Superbike YZF-R1s on the track. He owns a collection of fast Italian two-wheelers. 

Start with the basics. Hamilton has the money. According to a list of wealthy Brits published earlier in December by The Mirror, Hamilton’s net worth is approximately $375 million. That’s enough to fund KTM’s Grand Prix road racing efforts for the foreseeable future. The annual interest on that amount–if it was in a certificate at my credit union– would generate significantly more than the reported $11 million or so Red Bull kicks in to the KTM MotoGP effort.

But at the levels of finance Hamilton operates in, the game doesn’t work like that. Hamilton will have personal sponsors who throw money at any project he gets involved with. When basketball legend Michael Jordan ran an AMA Pro Superbike team, much of the funding came not from him but from his personal sponsors and others who wanted the attention that he would attract–the U.S. National Guard being one of them. And when I researched an article on the Target/Ganassi IndyCar program for a business newspaper, I found that Target provided virtually nothing in the way of sponsorship. All of the companies with logos on the Target racing cars paid the bills as part of their overall business interaction with the retail giant.

The point is, Hamilton wouldn’t serve as just some rich businessman throwing personal money at a pet project on an impulse. If he got involved, it would be a complex project involving several large multinational corporations. KTM could end up with all of the money it reasonably needed to compete in MotoGP.

But it would come at the cost of having bosses to report to–bosses who are powerful financial figures who want results.

And one of those bosses would be one of history’s most famous and successful racers. Hamilton is a lot like Marc Marquez, in that the record books are littered with their names. Watching Hamilton drive at his best is just like watching Marquez ride–you know you are watching something otherworldly, something genius. (If you need proof, go watch the 2008 British Formula One Grand Prix at Silverstone. In changing, mixed, treacherous conditions, Hamilton won by 68 seconds.)

Hamilton knows how to win under pressure that is difficult to imagine for motorcycle road racers. The money involved in F1 dwarfs that in MotoGP. The pressure and publicity that goes along with winning multiple titles in F1 makes the public life of Valentino Rossi look like the life of a supporting actor on a moderately successful TV sitcom of the 1990s.

When Team Rahal announced that it was going Supersport racing in MotoAmerica, I wrote that the squad would bring a level of professionalism and publicity to the series because it was a racing organization with a history of success in a very popular and high-profile international racing series. If you think of a potential Hamilton/KTM collaboration, it would be most accurate to see Hamilton’s organization upping the already insanely impressive KTM/Red Bull level. This could be good, because Hamilton and company know what it takes to win. Trackhouse Racing Team Principal Davide Brivio has said that having Justin Marks, a NASCAR race winner, as head of Trackhouse is good because Marks understands what it takes to win. So does Hamilton.

Someone like Hamilton is not going to get involved just for fun. Again, when Jordan got involved in AMA Pro Superbike racing, the team was reasonably successful but wasn’t able to consistently challenge the riders on the factory Yoshimura Suzukis. Jordan said that one of his biggest frustrations was not being able to get factory-spec parts from Suzuki for his team’s bikes. Jordan didn’t want to just be good, he wanted to win. If Hamilton gets involved with KTM, it will be at the factory level. Hamilton will want results, and the factory team will have to develop a bike and attract and retain riders who can beat competitors on the all-conquering Ducatis.

That, ultimately, is the downside of having Hamilton’s organization involved with a racing program. KTM’s progress in recent years has stalled, the team going longer without a race win in MotoGP than even struggling Honda. The RC16 may be as good as anything other than the latest-spec Ducati Desmosedici on any given Sunday. But Hamilton’s interest in the sport isn’t just to be “pretty good,” and it’s definitely not for the ROI. He needs no additional publicity. And there are far better ways to invest money than in MotoGP racing, unless one anticipates a dramatic increase in the value of a MotoGP team under the ownership of Liberty Media. And even that takeover has now been delayed.

No, Hamilton will come to the game to win. And the challenge of working with Aliens is that they want Alien-like results. Again, we can draw a comparison with Marc Marquez, who walked away from an incredibly lucrative contract with Honda because there was no longer any chance of winning on the RC213V. Marquez took a solid financial hit and went to the satellite Gresini team because he missed the taste of victory champagne. Standing on the top of the podium–or at least showing up at the track with a realistic chance of winning–is what motivates Aliens like Marquez and Hamilton. And if KTM can’t deliver that, there could be uncomfortable discussions between the team and its angel investor(s).