Newcastle Falcons owner focuses on financial stability after challenging year

Bristol Bears played Newcastle Falcons on April 21. The team’s owner has now published its annual accounts

The owner of Newcastle Falcons said it is focusing on financial stability and a flourishing academy after a challenging year in which it parted ways with one of its teams.

Newcastle Rugby Limited – which includes figures for both the Gallagher Premiership team Newcastle Falcons and Newcastle Thunder rugby league club – has filed accounts for the year ended June 30 2023, showing turnover dipped from £12.2m to £11.2m, while operating profit also fell from £2.5m to £2.4m. At the year end the group had net liabilities of £20.6m, but in excess of £20.3m is due to majority shareholder Semore Kurdi who will not call in the debt and will also “continue to invest in the long term future of the group”.

The accounts cover the 2022/23 year which saw Newcastle Falcons’ position marginally improve from 12th to 11th in the league – but Thunder were relegated to RFL Betfred League One after finishing in last place in the championship. In his report, owner Semore Kurdi says: “Despite a number of years of support from the group and tireless effort from club staff, fan engagement has continued to show little growth and as such the decision to part company with Newcastle Thunder was made.”

Newcastle Thunder have since re-entered the league under new ownership, and Mr Kurdi said the group welcomes the opportunity to host their forthcoming season’s games, wishing “the new ownership every success for the future”.

He said the move has allowed the group to concentrate efforts on its core business of Newcastle Falcons and its conference and events business – efforts which have been brought into sharp focus following the collapse of three clubs, Wasps, Worcester and London Irish.

In the report Mr Kurdi said: “This meant the Gallagher Premiership is now competed for by 10 clubs. This has caused others to take a hard look at club finances and Newcastle Rugby has taken significant steps towards a more self sustaining model. This will continue to come into fruition in the 2023/24 season and beyond.

“Management believe this emphasis on financial sustainability coupled with the continued investment into young, home grown talent will be something our faithful support can rally behind in the future months and years.

“Our academy continues to flourish, and we are incredibly proud of our academy programme. We continue to nurture and develop young talent in the region. Our record of producing home-grown players who are ready to succeed, both on and off the pitch, continues through the work of our experienced, skilled, and enthusiastic academy team.”

The report also shines a light on expansion within its commercial and conference and events activities, which now sees events being hosted at Kingston Park, Hexham Racecourse and beyond.

The report adds: “We also welcome our blossoming relationship with Newcastle United Women’s Football Club as we host both the day-to-day operations and matchdays throughout their season. Newcastle Rugby Foundation, our charitable arm, continues to develop and expand its work to make rugby the positive difference that changes lives for good, and this is something that the club will continue to support wholeheartedly.”

The Falcons are currently having a tough season on the pitch, having lost all 15 of their league matches so far.