Reports have emerged that Semore Kurdi, the owner of Newcastle Falcons, is considering selling the club after more than a decade at the helm.
Despite the club declining to comment on these suggestions, it is understood that Mr Kurdi, who acquired an initial stake in the Falcons back in 2011 and assumed full control in 2012, has engaged A&W Capital, a global sports investment firm, to facilitate the sale process. Options reportedly under consideration include a complete sale of both the club and its Kingston Park grounds or merely the team itself.
On the field, the Falcons have faced challenges; they didn’t win a single Premiership game last season but managed to avoid going out of business like other more prominent clubs such as Wasps, London Irish, and Worcester. The club broke its long losing streak with a recent victory over Exeter.
The most recent financial statements from April revealed the club's efforts towards achieving "a more self-sustaining model" after incurring losses of £2.5 million. The accounts also showed an increase in turnover for Newcastle Rugby from £8.9 million to £12.2 million; however, a prior year’s profit of £3.6 million had turned into a loss.
The financial statements have disclosed that the group is facing net liabilities of £18.3 million, with more than £20 million owed to Mr Kurdi. A statement within the accounts indicates Mr Kurdi's commitment to the group's stability and growth: "confirmed his willingness not to call on this debt, to meet the day-to-day working requirements of the group and also to continue to invest in the long-term future of the group", reports .
Mr Kurdi, a professional with a background in property and hospitality, has been lauded for his role in sustaining the Newcastle Falcons, the most northerly professional rugby team in England, through challenging times.
Mick Hogan, a former executive director at the Falcons, paid homage to Mr Kurdi's impact, saying: "Put simply there would be no professional rugby union in the region without Semore (and before him Dave Thompson and Sir John Hall). It's not just the tens of millions he has put into the club, but his leadership, navigation through the pandemic and his vision at key moments in the journey have been vital."
He added: "I hope he can now exit the club on terms and in a timeline that he deserves. The whole sport in this country owes him (and all the other club owners) a huge debt of gratitude and a massive thanks for his unstinting loyalty to the Falcons."
