Falcons’ soaring wage bill costing Kurdi dear

NEWCASTLE’S reliance on their Jordanianborn owner Semore Kurdi is starkly illustrated in the club’s latest accounts, which reveal the club lost £3.2m for 2016-17.

It takes overall losses among the 12 Premiership clubs to a whopping £30.5m, the first time that landmark figure has been breached, reflecting rocketing salaries.

Kurdi, who first became involved in 2010, has overseen a period of growth at Newcastle, with turnover rising from £9.1m to £9.7m in the last financial year – up 6.1 per cent.

However, Newcastle Rugby Ltd’s incorporation of Newcastle Thunder Rugby League Club has seen employee numbers and salaries rise, with the total wage bill, including 107 players and coaching staff, up £1m to £7.9m – representing 81.4 per cent of turnover.

Newcastle’s accounts show the club currently has just two directors – Kurdi and former chairman Dave Thompson, who rejoined the club’s board in February – while the group carries liabilities of £18.6m, most of which is underwritten by Kurdi.

Within the accounts, directors advised: “The group financial statements have been prepared on an ongoing concern basis, the validity of which depends on the continued support of the external providers of finance and the group shareholders.

“The group’s shareholder and director, I Kurdi, has confirmed his willingness to meet the day to day working requirements of the group and to also continue to invest in the long term future of the rugby clubs.”

Newcastle’s accounts further noted: “The directors consider the loss for the year to be satisfactory in light of current conditions and are optimistic around the long term prospects for continued growth both on and off the pitch.”

Proof for optimism came with a fourth place Premiership finish last season.