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I don't beleive these rumours about illegal parts. The top three bikes including engines were completely stripped in September and all were legal.
There is an article on this in todays MCN with interviews with Shaun Muir and Pete Jennings - they say that they had a setup problem with a lack of edge grip on the circuits used in the showdown.
Muir also puts it down to a loss of rider confidence.
Swan have not made a decision on renewing their sponsorship so as a precautionary measure most team members have already been given their notice.
Sounds to me like any one or all of those points could have been a contributory factor.