Newcastle Falcons are set to undergo a rebranding to become the Newcastle Red Bulls starting next season. The energy drinks company is on the verge of acquiring the Premiership Rugby team pending approval from the Rugby Football Union (RFU) and finalization by legal representatives. The deal with Red Bull, which includes taking on Newcastle’s debt, has been agreed upon with Semore Kurdi, the former chairman.
Red Bull’s proposal has been well-received, as they plan to absorb Newcastle’s debt, including a Covid loan of almost £14.5 million. Additionally, they aim to preserve the club’s academy products and enhance the club’s appeal to players. Last season, Newcastle finished at the bottom of the Premiership table with just two wins out of 18 league matches, hindered by the departure of key players to other teams.
Notably, England hooker Jamie Blamire has moved to Leicester Tigers, while former captain Callum Chick has joined Northampton Saints. The exodus of players includes Adam Radwan to Welford Road and Guy Pepper to Bath, showcasing the talent drain Newcastle has faced. Kurdi, who has invested approximately £25 million since 2011, is no longer able to financially support the club, leading to the search for external funding sources.
Despite previous discussions regarding financial assistance from other Premiership clubs and CVC Capital Partners, Kurdi’s attempts were unsuccessful. The Saudi Public Investment Fund, which owns the city’s football club, also showed no interest in investing in the rugby team. However, Red Bull has stepped in to acquire Newcastle, adding the team to their portfolio of sports entities, which includes Formula 1, FC Red Bull Salzburg, RB Leipzig, and a stake in Leeds United. Red Bull has a history of involvement in rugby, being a partner of England Rugby since 2020 and having individual sponsorship deals with prominent rugby players such as Jack Nowell, Mack Hansen, and Siya Kolisi.
Red Bull typically aligns its teams with the brand name, as seen with the New York Red Bulls in MLS. Newcastle’s only English championship title was secured in 1998, marking a historic moment for the club.