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The rugby teams of Oxford and Cambridge universities may be the latest victims of the credit crunch.

The clubs lost the main sponsor for their annual Varsity Match when Lehman Brothers Holdings Inc. collapsed this week. While the 127th game will go ahead on Dec. 11, the Lehman money was split between the universities' rugby clubs, helping to fund equipment, coaches, medical support and transport.

Lehman was in the third year of a four-year contract, and used the game, at Twickenham in West London, to recruit staff and entertain clients. The New York-based securities firm filed for bankruptcy two days ago and is selling off pieces of itself. The universities and the Rugby Football Union ruling body will meet to decide the next steps in filling the funding void.

``We have lost a valued sponsor but the Lehman employees have all lost their jobs,'' Cambridge rugby General Manager Ian Minto said in an interview today. ``It won't affect the match taking place. The extent of the Lehman fallout will be determined later. There is clearly an opportunity for another sponsor to step in.''

Richard Prescott, a spokesman for the RFU, said the organization is in discussions with Lehman. Lehman spokesman Mark Lane didn't respond to an e-mailed request for comment.

The sponsorship agreement was in place until the 2010 season and specified that the clubs would be paid each December after the match. Lehman's sponsorship meant its name was on the shirts, it got naming rights to the match and associated public- relations activities, and could use hospitality facilities to host clients and employees. The payment is a considerable amount of Cambridge Rugby's annual budget. Minto wouldn't release the financial details.

Names on Jerseys

Lehman was trying to use its first sponsorship of a European sports event to gain an edge over rivals such as Morgan Stanley and Goldman Sachs Group Inc. in the battle to lure bright employees and secure business from wealthy alumni. Former U.K. Prime Minister Tony Blair and seven members of his Cabinet went to Oxbridge, as did more than 20 percent of the chief executive officers at FTSE-100 companies.

The contest was called the Lehman Brothers Varsity Match, and the sponsor's name was on the teams' jerseys in the men's, women's and under-21 matches for the first time. In the past, the sponsor named only the trophy.

Lehman took over after insurer Marsh & McLennan Cos. ended its 30-year association with the event. That coincided with a decline in attendances to 38,000 in 2005 from a record of 70,000.

Boat Race

Like the annual Boat Race on the Thames river, the Varsity Match highlights a rivalry between the academic institutions, 64 miles (102 kilometers) apart but united by 800 years of history.

Dating to 1872, the contest has produced future rugby national team players. Scotland's Gavin Hastings, the former top scorer in rugby World Cups, and ex-England fly-half Rob Andrew are among the best-known past competitors. Nowadays, the event attracts established overseas players who have chosen to further their education amid the famous Oxbridge spires.

(Source: Bloomberg)