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It never made a lot of sense to spend that kind of money for several reasons:
1) The AMA/DMG series sucks with small attendance and generally crappy TV coverage.
2) The sponsor would only get a few seconds TV per race because it isn't like the KTM will be winning races.
3) KTM would never cover the cost because their streetbikes don't seem to sell in big quantities. Marketing to sell 1500 bikes with racing, instead of 1000 annually without doesn't seem justifiable.

KTM has become almost mainstream in the dirt world (it really is the Big 5 with Japan Inc and KTM), but their streetbikes never seem to have caught on. On pavement they remain a very niche manufacturer.
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