(Sean Quentin Lee is a freelance journalist, cycling fan and BPL contributor.)

The UCI have denied Australian professional cycling team Pegasus Racing a pro-continental licence. The decision not only ends the dreams of owner Chris White who had hoped to have his team race the grand tours, but shatters the careers of riders who had signed up to the squad in good faith earlier this year.

For riders such as Robbie McEwen and Robbie Hunter, finding a new home may not be so difficult, although finding a place on a ProTeam, most of which would have settled their rosters and budgets for 2011, may not be easy. For lesser credentialled riders, the task could well prove impossible.

For McEwen in particular the decision must be disappointing. The popular Australian would have been looking forward to finishing his career with an Australian-registered team. While a start in the Tour Down Under had not been confirmed, the sprinter had expected to take part in other early season races such as the Tour of Qatar and the Tour of Oman. That seems unlikely now unless he can find a new team of high ranking within the next couple of weeks.

The decision to deny Pegasus Racing a second tier pro-continental licence follows a similar decision made last month by the UCI which thwarted the squad's original goal of obtaining ProTeam status. On both occasions, Pegasus was given an extension to submit extra paperwork after their original applications were deemed incomplete.

While the UCI is yet to offer an official explanation for their decision, the withdrawal of a key sponsor coupled with other financial and management concerns are believed to have been the main reasons. Despite the team finding a new sponsor just hours before their final deadline, the UCI remained unmoved.

But alarm bells were sounding for Pegasus as early as October when scheduled announcements concerning the team's roster and major sponsors were cancelled. Team management claimed they were waiting for the Contador/contaminated meat scandal to die down but no further announcements were forthcoming.

The deadline for ProTour licence applications also came and went, and despite expectations that sponsorship and further roster details would be announced beforehand, the silence coming from the Pegasus camp was deafening. Not surprisingly the UCI deemed the team not strong enough to be promoted to the highest level.

While disappointing for fans and riders alike, the lack of a ProTour licence was not a complete disaster. Certain that they could gain a second tier pro-continental licence, team management remained positive and enthusiastic, stating that the team would seek wild card entries to major events and that they were already having promising discussions with race organisers.

But with its failure to gain a pro-continental licence, the team is now ineligible to seek entry into cycling's elite races. A third tier continental licence remains an option but is unlikely to appeal to many of the team's riders who would be unable to race at the highest level. With 'get out' clauses in most of their contracts, the scramble is on to find new homes.