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Can Red Bull's ownership of Newcastle help bring financial sustainability to Prem Rugby?
Leonard Curtis director and ex-Newcastle player Alex Cadwallader welcomes Red Bull’s arrival at Kingston Park
• Cadwallader, who played for the North East club during a ten-year career, says new ownership can revitalise Newcastle and help “unlock the potential” of domestic rugby in England.
• Newcastle finished bottom of the Financial Performance Index featured in the first Leonard Curtis Rugby Finance Report. Co-author Prof Rob Wilson says Red Bull’s takeover of Newcastle “marks a turning point both for the club and for Prem Rugby."
Alex Cadwallader, a Leonard Curtis director and former England U21 rugby union player, has said that Newcastle’s takeover by Red Bull could “unlock the potential” of English domestic rugby and help it achieve financial sustainability, but warned that growing the club’s revenues “will not be an overnight fix.”
The newly named Newcastle Red Bulls begin their 2025/26 Prem Rugby campaign at their Kingston Park ground today (Friday 26th Sept) against Saracens. The match has been heavily promoted to university freshers, the first of a bespoke marketing strategy for each game from the new owners.
A large crowd is anticipated after a record 9,100 watched Newcastle’s Prem Cup win over Harlequins on September 12th, beating their previous biggest cup attendance of 7,406 in 2007 against the Dragons.
The arrival of new owners at Newcastle – who have finished bottom of the league in each of the last three seasons – marks the first time a top-flight club has been sold in several years and comes amid ongoing concerns about the financial challenges facing clubs following the collapse of Wasps, Worcester Warriors and London Irish in 2022 and 2023.
Cadwallader – who played professionally for Newcastle, as well as Bristol, Newport and London Welsh over a 10-year career and is now a well-respected restructuring adviser for Leonard Curtis – said the new era at Kingston Park “is clearly an exciting, interesting and positive development.”
He observed: “If we look back a few years, Wasps, Worcester and London Irish were all desperately searching for a new owner and were all unsuccessful.
“So, for Newcastle, who by most measures have not been performing well either on or off the pitch, to be able to attract Red Bull is very encouraging and demonstrates that a seasoned and serious investor still sees value in owning an English Prem Rugby club.”
He added: “I would expect Newcastle’s playing squad to be gradually improved, which should deliver results on the pitch. Red Bull have a good track record in creating efficient structures that produce competitive teams. They have often felt comfortable challenging the old ways of doing things and will no doubt have some fresh ideas.”
Rugby governance to provide “litmus test”
However, Cadwallader warned: “In terms of increasing Newcastle’s revenue, this will not be an overnight fix.”
He pointed out that during previous eras at the club, when the North East side boasted international stars such as Jonny Wilkinson, Va'aiga Tuigamala, Garath Archer and Matt Burke, “this didn’t result in the club being profitable for a sustained period of time.”
He added: “The litmus test for Red Bull will be whether the current structures and governance will allow them to implement their plan fully. Will their recruitment plans be restricted by the current salary cap? How will the league react to any joint initiatives with any of their other sports teams? Will they want more control of their key assets, the players, than the various unions will allow?
“Hopefully Red Bull will bring some new ideas to the table that others will take on board.”
First-ever comprehensive index
Cadwallader’s comments come ahead of the launch of the second edition of the Leonard Curtis Rugby Finance Report, which will include Prem Rugby clubs’ financial data for 2023/24.
The inaugural edition of the report featured the first-ever comprehensive index of the financial health of Prem Rugby clubs, measuring their financial and sporting performance over the five-year period ending 2022/23.
Newcastle finished bottom of the Financial Performance Index after making a loss of £2.4 million in 2022/23 and closing the year with debts of £39.1 million and a negative equity position of £20.6 million.
Clubs racked up total losses across the league of £30.5 million, with no team posting a profit, while the combined debt level amounted to £311.5 million.
Cadwallader said: “As our first report showed, the current model hasn’t created any sustained financial success across Prem Rugby. Red Bull have clearly identified Newcastle as an opportunity to make a real impact, and their new approach may unlock the potential of the domestic game in England. Hopefully they will develop and identify a successful model that others can adopt going forward.”
Club’s finances “secured in the short term”
Prof Rob Wilson, who is a professor of applied sport finance and co-author of the Leonard Curtis Rugby Finance Report, noted that the arrival of Red Bull at Newcastle means the club’s finances are “secured in the short term,” adding that longer term success will “depend on executing a sustainable growth plan both commercially and athletically.”
He believes the takeover of Newcastle by Red Bull “marks a turning point both for the club and for Prem Rugby.”
“Newcastle had been operating under heavy financial strain, carrying around £39 million of debt, including unpaid government Covid loans,” he explained. “By assuming these liabilities, Red Bull has stabilised the balance sheet and provided the kind of financial security the club has lacked for years.”
As well as growing the fanbase and transforming the matchday experience, Red Bull’s plans at Newcastle are reported to include investment in the Kingston Park stadium, construction of a new indoor facility at the club’s training ground, developing the player pathway in the North East, and seeking a close working relationship with Newcastle United.
Prof Wilson said: “If managed carefully, Newcastle Red Bulls could become a showcase for how strategic ownership and brand-led investment can transform rugby. But execution will matter more than headlines, and success will be measured not just in wins, but in sustainability and community impact.”
While describing the takeover at Newcastle as “undoubtedly a landmark deal for Prem Rugby,” he warned it “comes with caveats.”
“Red Bull must balance bold rebranding with respect for Newcastle’s heritage to bring long-standing fans on the journey,” he said. “They must also prioritise investments that truly shift the economics of the club, with youth development, coaching and commercial growth featuring high on the to-do list, before chasing prestige projects.”
“Confidence signal to global investors”
Prof Wilson added: “For the league, the arrival of Red Bull is a confidence signal to global investors. It shows that Prem Rugby clubs, despite recent financial collapses, still hold value if paired with the right ownership and vision.
“Other strategic investors and brands will be watching closely to see if Red Bull can modernise Newcastle and generate sustainable returns.
“If successful, this could attract further external capital into the league, driving up standards in fan engagement, facilities and performance. The challenge for Prem Rugby will be ensuring governance keeps pace, maintaining financial discipline while embracing the opportunities that new ownership models bring.
“In the best-case scenario, Red Bull’s involvement could serve as a template for revitalising professional rugby in England.”
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