Euskaltel-Euskadi to fold at the end of the season after failing to find new sponsor

Euskaltel-Euskadi have been a fixture in cycling for almost 20 years

The Basque-based outfit has been a constant presence in top-level professional cycling since being established in 1994, but Spain's financial crisis and a lack of fresh investment has led to the team's demise.

In a statement released on Tuesday, management company Basque Cycling Pro Team said: "The arrival of a second sponsor, essential to ensuring the sustainability of the cycling team, has not taken place, which makes the continuation of the team in 2014 unfeasible.

"From this moment, Euskaltel will begin an orderly winding down of the project, including the immediate negotiation of the release papers of the team members.

"Today is a sad day for Euskaltel, for the team, for the current sponsors and for all of those who have supported the project. We regret that no company has opted to back this team, the doyen of the world cycling elite."

The team was set up as Euskadi in 1994 and enlisted the backing of telecommunications company Euskaltel in 1997.

Funding shortfall

Euskaltel-Euskadi quickly became a treasured part of the professional peloton, with its distinctive orange jersey and policy of only employing home-grown riders earning it fans around the world.

Euskaltel had committed to continuing its backing of the squad for the next four years, but austerity measures in the Basque country meant that public institutions were unable to provide the promised €3.5m contribution to the €9m annual running costs of the team, and Euskaltel were unable to make up the deficit, which would have meant doubling its investment.

Speculation had surfaced that Oleg Tinkoff, who is set to end his association with the Saxo-Tinkoff team at the end of the year, would step in, but the Russian billionaire dismissed the rumours as false earlier this week.

The Basque Cycling Pro Team statement added: "During these months we have worked actively to maintain multiple contacts with companies to try to ensure the survival of the team going forward, going to the possible limits of negotiation. Despite the work and efforts made by Euskaltel, in the Basque region and internationally, none of the efforts have borne fruit."

The news means highly rated riders such as Mikel Nieve, Igor Anton, Gorka Izagirre, Ion Izagirre and 2008 Olympic road race champion Samuel Sanchez will be among the riders having to find new teams for the 2014 season.