Recruitment freeze as Falcons look for £5m

NEWCASTLE have frozen recruitment until their finances are sorted out with other clubs considering a £5m loan to make sure the Falcons are in business next season.

- By PAUL REES

Newcastle are bottom of the Premiership but the threat of a relegation play-off has been removed with Championship leaders and likely winners Ealing Trailfinders not meeting all the entry criteria.

The Falcons' owner Semore Kurdi has put the club up for sale after 14 years of making good losses and Newcastle have to show the Premiership's financial monitoring panel by the end of next month that it is in a position to continue trading.

A loan is being considered by the other clubs and 27 per cent stakeholders CVC because of the ramifications if Newcastle followed Worcester, Wasps and London Irish into bankruptcy.

It would reduce the Premiership to nine clubs, decreasing its value to broadcasters TNT Sports and sponsors and add to the financial pressure on the others, who are all loss making.

"Professional rugby is a struggle from a financial point of view and it is a worry," said Northampton's director of rugby, Phil Dowson, who played for Newcastle.

"It is a pretty dark picture with Newcastle under pressure after Worcester, Wasps, London Irish and Jersey Reds all went bust. I have a huge respect for Newcastle and had a lot of fun there as a player.

"The club has a lot of history and I hope they can come up with a solution. But the financial plight of clubs is a concern and not many unions are turning in a profit.