Official report: Euskaltel and Alonso fail to reach an agreement

Euskaltel Euskadi will soon be history after both the team and the Formula 1 star revealed negotiations over the latter's purchase of the team and its license have been broken off for good.

Several reports over the weekend claimed talks between the parties were proceeding slowly, but both the team and Alonso's men sounded optimistic a deal might be struck eventually. In a press release issued on Monday afternoon, though, telecommunications company Euskaltel revealed they've pulled out of the negotiations and that the team will fold after all come the end of 2013.

"Negotiations between Euskaltel and Alonso's representatives over the latter's acquisition of Euskaltel Euskadi - started on August 31 with the signing of a pre-agreement - have come to an end without an agreement being reached", the statement reads.

"We can't hide out disappointment about the final outcome of the negotiations. It's a sad day for Euskaltel and the team after expectations were raised following the agreement reached in principle at the end of August and the public statements made at the time by Fernando Alonso and his representatives".

Euskaltel refused to reveal why the talks reached a standstill and eventually fell through, saying "we would like to reveal the details as we, with all sincerity, did our utmost, but the confidentiality of the negotiations have to be respected".

Euskaltel are adamant they did "everything within their powers to reach an agreement without setting any type of economic pre-conditions".

As reported on earlier, the talks are thought to have hinged on Alonso's reluctance to take on the team's backroom staff and sponsors, as well as the difficulties in moving the team from its base in the Basque Country to the less tax-friendly region of Asturias.

Alonso's representatives didn't comment on where the talks stranded either, simply saying "we tried until the very end, but we won't be able to lead a cycling team in 2014". Writing on Twitter, the Spanish star added they're already working on setting up a team for 2015, though.

As a consequence of the deal being called off, Euskaltel's riders are again back on the job market. Only Gorka Izagirre of the current riders have already left the team, meaning 26 riders will need to pick their phones up quickly in the hope of securing a ride for next year.

Neither the riders nor the team heads have yet to comment on today's news.

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