Newcastle Falcons owner reveals intention to sell
Newcastle Falcons’ owner Semore Kurdi has confirmed plans to sell his majority stake in the club following a decline in profits and extensive cost-cutting measures.
Kurdi, who first purchased a 40% stake in the club in 2011 before becoming the majority shareholder the following year, has enlisted advisory firm A&W Capital to oversee the sale.
This move follows several reported approaches during the summer and comes as Newcastle Rugby Limited, which accounts for both the Premiership side Newcastle Falcons and the rugby league club Newcastle Thunder, reported turnover dropping from £12.2m to £11.2m in their latest financial accounts. Operating losses also fell slightly, from £2.5m to £2.4m.
The accounts revealed net liabilities of £20.6m, with more than £20.3m owed to Kurdi himself. According to the financial statement in 2022, Kurdi indicated, “his willingness not to call on this debt, to meet the day-to-day working requirements of the group.”
Ahead of the current 2024/25 season, the playing budget was cut to less than £4m, significantly below the Premiership’s £6.4m salary cap. This led to the departures of several young players, including Guy Pepper, Louie Johnson, and Phil Brantingham.
Despite a challenging 2023/24 campaign in which the Falcons went without a single league victory and currently sit at the bottom of the Premiership table, the arrival of Steve Diamond as consultant director of rugby saw the team break a 25-match losing streak with a win over Exeter in October.
Kurdi’s decision to explore a sale comes amidst broader financial struggles within Premiership Rugby. While there is no indication that Newcastle faces the same fate as Worcester, Wasps, or London Irish, all of whom entered administration last season, Newcastle and other Premiership clubs will undergo the league’s financial monitoring panel assessments again in March.
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