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Talks between Alonso and Basque cycling team fail

September 23, 2013

MADRID (AP) — The Euskadi-Euskaltel cycling team says it has failed to strike a deal with Formula One driver Fernando Alonso for a takeover of the team, meaning it will have to fold.

The Basque team says in statement Monday that it is “obligated unfortunately to once again initiate an orderly shut-down process.”

Alonso said last month he had reached an “agreement in priciple” to rescue the 19-year-old financially stricken team.

Alonso was to provide funds to bridge a budget shortfall after Euskadi-Euskaltel lost 3.5 million euros ($4.7 million) of regional government funding due to austerity cuts prompted by Spain’s financial crisis.

The team’s principal sponsor, telecoms company Euskaltel, had previously provided a majority of the team’s 9-million euro annual budget.

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