Newcastle Falcons are set to undergo a rebranding process for the upcoming season, transforming into the Newcastle Red Bulls following an impending takeover by the energy drinks company. While the transition awaits final approval from the Rugby Football Union (RFU) and completion of legal procedures, Red Bull has reached an agreement with Semore Kurdi, the former chairman, as communicated to the team members.
Red Bull’s proposed strategy includes assuming Newcastle’s financial obligations, encompassing a substantial debt amount, including a nearly £14.5 million Covid-related loan. The company aims to retain the club’s talented academy players and enhance the team’s appeal to prospective athletes.
Having concluded the previous season at the bottom of the Premiership standings with only two victories in 18 league matches, Newcastle has faced setbacks due to the continual departure of key players to other clubs. Notably, players like Jamie Blamire and Callum Chick have moved to rival teams, impacting the club’s performance.
The current Newcastle chief, Kurdi, has decided to cease his financial support for the club after investing approximately £25 million since 2011. Despite considerations for financial aid from other Premiership clubs and CVC Capital Partners in the past, securing additional funding proved challenging. Efforts to attract investment from the Saudi Public Investment Fund, which owns the city’s football club, were unsuccessful, as the fund showed no interest in acquiring the rugby team.
However, Red Bull has stepped in to acquire Newcastle, adding the rugby team to its portfolio of sports entities, which includes renowned brands like their Formula 1 team, FC Red Bull Salzburg, and RB Leipzig. The company’s involvement in rugby extends to individual sponsorships with notable players such as Jack Nowell, Mack Hansen, and Siya Kolisi.
Red Bull’s ownership typically leads to teams adopting the brand’s name, a trend observed with entities like the New York Red Bulls in MLS. Notably, Newcastle’s sole championship victory in English rugby dates back to 1998.
