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The KTM/KR Saga Continues T he plot thickened almost on an hourly basis at the Czech Republic Grand Prix on the meltdown between KTM and Proton Team KR after the su rprise announcement in the summer break that the Austrian man- ufacturer was to cease supplying engines for the remainder of the season - with the possibility of a court case seeming to grow stronger on the same basis. Both sides told different stories, and KTM put extra fuel on the fire with an unexpected reversal on the eve of practice in Brno. On Thursday, August 25, KTM arrived with a third engine to add to the two already held by the team and installed them in chassis during the afternoon. At this point, rider Shane Byrne (contracted to KTM rather than the team) was standing by, the bikes carrying his racing numbers, but Jeremy McWilliams was also on hand, in case they were to race the old KR V-five instead. Then at 5 p.m. came another surprise from the Austrian company. Proton team manager Chuck Aksland explained: "We had a fax from their legal department, telling us we were not authorized to use the engines." on financial backing. KTM agreed that they baffling, needed to find more sponsorship backing have been many inconsistencies from but agreed to make good any shortfall. The amount the team was expecting from KTM over the season was approximately 2.5 million euros, with Proton Team KR putting in a similar amount, according to Aksland. "So far, we've had about 10 or 15 percent of what we were expecting from KTM," he said. The team had been hit by the loss of most of its Proton backing at the end of last season. "We have less than half of what we had before," Aksland said. The agreement with KTM had been for the supply of engines, rider and tires. (It is understood that Michelin required 50,000 euros per race for this faCility.) The relationship began when the team tested KTM engines last year - a year before the Austrian factory had announced cancella- tion of plans to field its own MotoGP team but had continued development of the engine in the hope of becoming engine suppliers. The project for this year had started with a proposal from KTM in late November last year, Aksland said. Then KTM boss Stefan Pierer had visited the team's Banbury head- and MICHEliN there the people who represent KTM. I don't think our reputation should be tarnished we have acted honor- ably and faith." in good They were in discussion with lawyers concerning possible legal action. KTM's withdrawal, according to previous statements, was because of disappointing results and a general lack of progress. The team has scored just one point all season, with little improvement coming from the Mk2 engine introduced at Le Mans. At Brno, represen- tative Kurt Nicholt Back to the wrenches, and the V-fives quarters in Britain in December, agreeing then to provide engines and a rider. were hurriedly reinstalled for the next "On February 4, we had a meeting in the day's riding, while the disgruntled Byrne Salzburgring when I presented a minimum (former motocross. went back to his motor home. budget," Aksland said. "We discussed ways World Champion) told pressmen: "If two parties are talking Proton Team KR was still shell-shocked by KTM's decision, of which they not only had had no warning, according to Aksland, to cut costs - they even suggested canceling about an agreement of Proton KR team rider Shane Byrne and team manager Chuck Aksland wait in limbo at the Czech Grand Prix. the 250 program. Then I was asked to leave more than 2 million the meeting. Pierer said we would get a proposal within a week." euros, it ne;~ds a lot more discussion than a letter of intent. But it On February 8 came the letter-of-intent e-mail, saying that if KTM were to act as a is not our style to badmouth our partners." Pierer, interviewed by telephone, said: "I and not Dorna." major sponsor, "we will want a lot of say." don't want to get emotional and put more oil Aksland continued: "We drafted a contract, but it was never signed. But they sent on the fire. If Team Roberts feel they have any claims left, there will obviously be a agreement in place," Aksland said. "The it back to us mid-March with some suggested changes in a clause." The contract never was signed, but both correspondence went back and forth, and parties proceeded within the broad frame of they proposed to support us for Brno, for this agreement, leading Proton Team KR to court case. Obviously, I trust the court to come to the right decision. From the economic and marketing point of view, this project doesn't make sense any more. The bad performance was damaging our reputation." down firmly on the side of the dismayed Team Roberts in the dispute and pledged Dorna's help and support. "We understand the problem is not coming from Team Roberts," he said. "In one more race. We didn't accept that either." the belief that the agreement may be legally but which was only communicated to the team belatedly, via a short e-mail, with KTM's press announcement attached. Aksland heard about it from rider Byrne while he was on vacation, and upon checking his e-mail and finding the message, "I mailed them back, saying that we don't accept the decision, because we have an All the time, he was also considering the Proton Team KR franchise contract with Dorna to take part in the full series. Another of KTM's commitments to the team was the Michelin tires, but the French company had agreed to supply the team for this race and possibly for the future. "Michelin have been great," Aksland said. "They understand what we're going through, and I think an arrangement can be made." There were many uncertainties, but options were limited, and "if the V-five is the way to go for the rest of the year, we can make it happen," said Aksland. "We have nine engines sitting on the floor." The team was considering taking legal nobody is happy - not KTM, not Roberts Dorna chief Carmela Ezpeleta came terms of the franchise agreement, we have the right to cancel that if they do not participate in the races, but I will not exercise that right." enforceable. Press liason Pit Beirer agreed that the matter would probably end in court but 'j\J1 this time, we've proceeded with good faith on the letter of intent," Aksland said. insisted that KTM had never promised or intended to pay the amounts mentioned by involved in helping to put the deal together. 'J\lthough there was no signed contract, they've complied with the terms and even Aksland. - with KTM to help them participate," Ezpeleta said. "It is financial, but I cannot say how much we are paying them. We decided to help them, on condition that they did not have a Spanish or Italian rider therefore it was with Team Roberts, and with Shane Byrne." Asked if he would be trying to get money back from KTM, he said: "Not all the money is paid yet. Now we will look at how to help Team Roberts, possibly." Ezpeleta had an inkling of the trouble brewing after talks with KTM after the German Gp, before the summer break. "I was informed verbally by KTM that made some payments, though not the full amount." The news had come right out of the blue, he said. 'JI,t Laguna, they were even talking about having two riders for Donington Park," Aksland said. "We feel they are in breech of contract. We've been racing for 20 years, and we've never had an experience like this "Our situation is very clear," he said. "We had a request from Roberts for an engine at the end of last year, and we decided to go ahead. But we always said we would not finance the team. We had a disagreement about testing before Le Mans - Kenny wouldn't test without payment, but we had made no promise for money. We never signed the contract, because we never agreed." He was unaware of any letter of intent, before. If they wanted to withdraw, they but said: "With the budget we have, it is not could have discussed it with us and negotiated some terms. But we heard it from the rider. enough to be competitive." "If they did not intend to complete the whole season, why did they develop the Mk2 Already they had had to swallow an 800,000 euro cost for tires and 300,000 He reconfirmed that Dorna had been "We have an agreement - not a contract euros for the rider. they considered the performance was not Aksland showed this reporter a letter of intent from KTM, sent bye-mail, which version of the engine?" he continued. "When Kenny met Pierer in Austria at the time of Regarding the method of informing the team, he said: "It's like stopping with a girl- the Portuguese Gp, one of the things he clearly set out terms, including a discussion spoke about was a three-year program. It's friend. There is no good way to do it. It's very sad, a losing situation for everyone, and enough, and they prefer to stop," he said of the talks, making him better informed on the situation than KTM's erstwhile partners. Michael Scott action against KTM, even though no formal contract was ever signed between the two. 6 SEPTEMBER 7, 2005 • CYCLE NEWS