Saracens are facing the prospect of more multi-million pound losses as a result of their salary cap breach, with main sponsors Allianz set to end their nine-year association with the club.

The financial services company have yet to give formal notice but are unlikely to trigger their option of extending the existing deal, which expires next year, due to Saracens' tarnished reputation.

Sarries are so concerned that they have begun sounding out alternative sponsors for the period 2021 onward, although any new partnership would result in them taking a major financial hit.

Saracens are facing losing main sponsors Allianz as a result of their salary cap breach

They may also have to rename their stadium, which has been known as Allianz Park since it opened in 2013.

Allianz currently pay Saracens more than £2million a year in a deal that covers naming rights to the ground and shirt sponsorship.

It is by far the most lucrative deal in the Premiership. The next best shirt sponsorship packages bring Premiership clubs around £600,000, with some worth as little as £150,000.

Sponsorship experts believe Saracens will do well to find a company willing to pay even half of what they receive from Allianz, which would result in a loss of sponsorship income of more than £1m a year from 2021 onwards, the latest in a long line of setbacks after a Sportsmail investigation revealed their potential salary cap breaches last March.

In addition to the reputational damage incurred by being found guilty of multiple breaches and being relegated from the Premiership, the fact that Saracens will be in the Championship next season and absent from European competition will also lessen their allure to sponsors.

Shirt sponsors Allianz currently pay Saracens more than £2million a year in the deal

The club's executive team are also in turmoil, with chairman Nigel Wray resigning last month and interim chief executive Ed Griffiths stepping down last week after just 26 days in charge.

Saracens have been closely associated with Allianz since announcing a six-year sponsorship and naming rights deal in 2012, which was extended in 2018 in a renewal that gave the Munich-based company first option to extend further in 2021.

Allianz sought to distance themselves from Saracens' salary cap breaches after they were found guilty by an independent panel last November, but have yet to publicly clarify their intentions. At that point the club were protesting their innocence and claiming they would appeal against the ruling.

The full scale of Saracens' wrongdoing was revealed after the panel's report was belatedly published last month, with the club found to be in breach of the salary cap in three separate years and unable to comply this season.

Main sponsors Allianz are set to end their nine-year association with the Premiership club

That led them to being docked a total of 105 points to confirm their relegation. Allianz have made no public comment since issuing a statement in November in which they said they would be holding discussions with Saracens about their shared values.

'The independent panel has ruled and Saracens have accepted the consequences,' the statement said. 'We respect that process and have no comment on it.

'Allianz is a long time sponsor but is not a member of any executive or supervisory boards of Saracens. The financial decisions taken in relation to the remuneration of the players are taken by the club's officials and Allianz has played no part in this process.

'At Allianz we act with transparency and integrity and living up to these high standards is very important to us.'

Saracens and Allianz declined to comment.