Newcastle Falcons are set to receive a multi-million-pound loan from rival Premiership clubs to meet the financial criteria to stay in the league next season, with the club’s future in jeopardy.
Telegraph Sport understands that the loan – estimated to be between £3 million and £4 million by sources and part-funded by CVC Capital Partners, the private equity company with a stake in the English top flight – will enable the club to finalise contracts for their squad ahead of the 2025-26 campaign.
Newcastle are currently bottom of the Premiership with two wins from 11 matches this season and have announced only one signing for next season, with Ethan Grayson returning to the club after playing in the United States.
The news follows three other Premiership clubs – Worcester Warriors, Wasps and London Irish – going bust between 2022 and 2023, with the league dropping from 13 teams to 10 as a result. Steve Diamond, Newcastle’s director of rugby, has already lived through a similarly desperate situation while in charge of Worcester.
In the wake of those clubs going into administration, Premiership Rugby set up a Financial Monitoring Panel, with its role to provide independent oversight and decision-making in respect of each club’s financial status. With Newcastle potentially falling foul of those FMP regulations next season, action has now been taken by the other clubs to support them.
Semore Kurdi, who became Newcastle owner in 2011, put the club up for sale last year. However, it is understood that interest has been limited, which – combined with Kurdi’s desire to sell – has led to the current financial situation, so the other Premiership clubs and CVC have stepped in. CVC invested in Premiership Rugby back in 2019 and owns a 27 per cent stake in the league.
Telegraph Sport reported last year that Newcastle were one of four clubs identified by investors in Saudi Arabia, along with Gloucester, Leicester Tigers and Northampton Saints. The Saudi’s sovereign Public Investment Fund already owns an 80 per cent stake of Newcastle United football club.
Newcastle Falcons declined to comment.
