Steve Diamond: 'I am confident Newcastle will be playing next season'

Newcastle Falcons boss Steve Diamond has revealed the club has “frozen” player recruitment for next season as they attempt to find new investors and clarify details of a potential loan of around £5m from the fellow Gallagher Premiership clubs and CVC Capital Partners, the investment company, that owns 27 per cent of the league.

Diamond insists that Newcastle are not in the same situation as Wasps, London Irish and Worcester Warriors who collapsed as professional teams under the weight of massive debts and admitted the club needs significant investment to secure its long-term future. A loan would enable Newcastle to compete in the league next season and they have until the end of April to reveal funding plans for next season. If new investors do not come in by then it is expected the loan will be triggered.

The former Worcester director of rugby was adamant that not paying players was not in the club’s “vocabulary” as they prepare to take on Sale Sharks at home on Friday night, desperate to get off the bottom of the league. He told the media today: “It’s public record we are looking for investment and I am pretty sure that if that investment doesn’t come, then this (loan) is a fallback position to maintain our status in the league.

“When I was at Worcester, the situation was different to now because it was never out there that we needed investment and everyone was kept in the dark, including Premier Rugby and the RFU. The only conversation Semore [Kurdi, current owner] and I have had is over potential investors coming in.

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“There has been some interest, but as of yet, nothing concrete. The loan might be an option to maintain the position in the league, which is very important to CVC, who are a big stakeholder in the league. It would be good for the broadcasters to have Newcastle in the league.

“We are retaining players as we speak and I informed the squad yesterday that we will not be recruiting immediately new players up until there is some clarification of some investment or loan coming in. It is not an ideal situation, but the number of players who I have retained is up to 28 and contracts in place and there are three or four who have been told that if they do get another option, then to come and see me.

“The people who I have been talking to about joining us are in the same bracket at the minute, where I can’t make a decision until we get some clarity. I am confident Newcastle will be playing next season and I am unaware of what the promotion and relegation is and if other teams don’t meet the criteria or play off we will be active to retain our status. This year has gone remarkably well compared to where we were, even though we are still losing £2m. We are in good fettle.

“If a Championship club come up to the Premiership and spend £4m you will end up with my team and get beat every week and if you want to go to where Sale are you are going to have to spend £8m-£9m then you have to your stadium and staff. If you come up for three years then you will be £30m out. That’s the reality and why not many of them are knocking at the door.”