Cyclingnews received information that team manager Chris White had indicated that financial support for the squad has ceased due to the majority owner of the squad withdrawing support.
White went on to advise of the uncertainty which now surrounds the future of Pegasus Sports.
Speculation has been rife in recent days that the team's potential commercial backer - which had yet to be announced - withdrew its support, leaving White without a headline sponsor for the 2011 season.
It now seems that financial problems are at the root of the team's troubles; whilst White has constantly denied that this is the case, information garnered by Cyclingnews indicates that he faces a mammoth task simply constructing a squad with any backing for 2011.
Cyclingnews also confirmed that the team will not receive a Professional Continental licence, although an extension has been granted until midway through this week. Six riders are now seeking alternative arrangements after the team was denied a licence by the UCI.
Stay tuned to Cyclingnews for more on the troubles plaguing Pegasus Sports.
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