Well Harish, this seems to be about the most plausible answer:
To get the wooden spoon is now a prize for finishing last in a sporting event or other competition. It derives from a Cambridge University custom of presenting such a spoon to the person last in the Maths Tripos. In 1811 there were three classes of Honours degree; the first were called Wranglers and were said to be born with golden spoons in their mouths. The second were Senior Optimes and had silver spoons in their mouths. The third type were Junior Optimes and were born with lead spoons; the last Junior Optime was called the Wooden spoon. Those without Honours were either meritorious, in the Gulf, or just one of the Many.
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Wandering aimlessly through FT since 1999.