Walden Motorsport will not participate in the 2008 V8 Supercar Championship Series after owner Brian Walden confirmed that key factors for the Sydney team to compete in the category had fallen through.

The team was planning to run an ex-Paul Weel Racing VE Commodore in 2008, but was forced to scrap entry plans into Australia's premier motorsport category, after the closure of PWR in early December.

The Silverdale operation, which was branded as the "Spirit of Sydney" in an attempt to join the 2007 series previously contested selected rounds of the 2004 V8 Supercar Championship, but has been forced to sell off its competition franchise as a result of lost support from major backers.

"Due to PWR ceasing operation we have lost our level one support, and our naming right sponsor feels that without that support we will not be competitive," said Walden.

"And they are right, with no technical support or engine deal it will make it almost impossible to be competitive as our aim was to be a mid field team for 2008, our first full season in the category.

"I'm obviously upset, but our sponsor wanted us to align with a level one team and were not happy to continue with us without that support, we will now have to sell or lease the licence."

The team is still expected to contest the upcoming WPS Bathurst 12 Hour race, whilst Fujitsu V8 Supercar Series teams are likely to bid for Walden's V8 franchise to field a car in the premier level championship.