Recruitment freeze as Newcastle search for funding

Steve Diamond, a consultant for the Newcastle Falcons and head of rugby, claims that until funding is secured for the upcoming season, no new players will be hired.

Semore Kurdi, the Falcons’ owner, and the team are actively looking for new members, or they could need to apply for a loan to get them through the 2025-26 campaign.

“We won’t be recruiting new players until there is some clarification regarding any potential investment coming in, a loan, or any other options,” Diamond said.

Premiership Rugby and CVC Capital Partners, which owns more than a quarter-stake in the competition, were in talks over a loan worth about £4 million to help ensure Newcastle adhere to the financial requirements to compete next season, according to a Sky News report over the weekend.

The league is working to prevent Newcastle from ending up like the now-defunct trio of Worcester Warriors, Wasps, and London Irish, who all stopped operating between September 2022 and June 2023.

Although Diamond claims Newcastle are not in the same league as Worcester when they fell, Diamond claims.

We are still in the scope of the financial management statement, he said, and we are still speaking to investors and figuring out other options, so we are well within our time frame.

Diamond confirmed that 28 players are either signed or ready for the following season, making up the squad that senior academy players would add to.

Other players have uncertain futures, and potential new signings have been delayed in terms of talks.

If and when the new funds are available, Diamond would hope to add about six players to his squad.

The club is on track to finish third in three years by operating with a playing budget that is far below the rest of the Premiership.

Between March 2023 and October 2024, Newcastle won 25 games without losing. They lost all 18 Premiership games last season.

In an effort to reduce financial losses, costs have been drastically reduced, but the result has been poor relations for the club.

Although interest has increased, nothing concrete has been disclosed about the club’s sale, owner Kurdi put it up for sale in November.

Although Diamond insists that everyone at Kingston Park is aware of what is happening at this time.

He recalled that “we went through a real debacle at Worcester where there was no real clarity or honesty knocking around.”

This is completely different. The squad and the staff have been informed of our location the same day as I did. No fear exists.

We are relying on the shareholders to solve this problem, and I will let the staff and players know where we are right away.

“I don’t believe there will be any mystery illnesses or people who cry because they won’t be paid by the month’s end,” he said. That is not even a word we use here. We’re in good shape.

That demonstrates Premiership Rugby’s desire to keep Newcastle moving.

Before the Ealing News was made public, Diamond gave his opinion on the financial realities surrounding the divisions’ financial situation.

He predicted that if you spend $1 million on your team and earn £500, 000, you will lose 100-0 per week.

You will end up with my team, which is eliminated every week, if you spend £4 million. You will have to spend between £8 and $9 million in year one if you want to travel where Sale Sharks are.

Then you must organize your stadium and hire coaches. You need five physiotherapists, two doctors, four strength and conditioners, an academy, and so on and on.

“And you’re now £30 million out, and you don’t want to go up for a year, you go up for three.”