The Red Bull effect - what next for Newcastle?

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Newcastle Red Bulls players warming up before the Saracens gameImage source, Getty Images

Image caption,

Red Bull replaced local businessman Semore Kurdi this summer at Newcastle

ByAdam Lanigan

BBC Sport, North East & Cumbria

A renamed club under new ownership in a rebranded league. The script was set for a glorious start to the 2025-26 campaign for Newcastle Red Bulls.

Played in front of the first sell-out crowd at Kingston Park for seven years, Newcastle could not deliver a stand-out victory as Saracens played with a hard-edged physicality to make sure they headed south with a bonus-point victory.

Perhaps it was the Red Bull effect in reverse as Sarries were determined not to lose, certainly not judging by a social media post they put out afterwards.

The takeover of ailing Newcastle by Red Bull has the potential to be a game-changer for English rugby.

After years of struggle and the loss of three clubs from the top flight, here is a storied global brand, with a history of sports investment dipping their toe into a new sport and a new venture in a league wanting fresh impetus.

But it is only the first league game for Newcastle in their new guise, so what could happen next in this intriguing tale?

Arriving at Kingston Park on Friday, it was hard to miss the imprint of the new owners on proceedings.

From the DJ playing in a special booth outside the ground to cars emblazoned with the sponsor's name and free products handed out to spectators walking up to the ground.

What was generated was a palpable buzz with the ground packed to the rafters. Fireworks greeted the home players' arrival while lulls in play were met with music over the tannoy.

And despite the name change, it did not take long for cries of 'Red Bulls' to echo round the terraces.

Over 9,000 were present for the Prem Rugby Cup against Harlequins a fortnight before, while 10,210 fans were there for the Saracens game, the highest in the league since 2018.

A large number present were in the 18 to 30 demographic and many younger, a good sign for rugby union in general.

In comparison last season, their average crowd in the league was 5,908.

An exciting try inside two minutes hinted at what was possible before Sarries regrouped, came back strongly and ultimately secured a convincing triumph.

Alex Hearle sprints away from the Saracens defence to score a try for Newcastle Red BullsImage source, Rex Features

Image caption,

Newcastle won only two league matches last season and none the season before

Playing catch-up

But should anyone be surprised at the outcome?

Defeat by Saracens was Newcastle's 38th loss in 40 league games stretching back to March 2023.

It is now almost three years since they won an away league fixture and they have finished bottom of the league in each of the past three seasons.

Operating with a shallow squad last year, well under the salary cap, director of rugby Steve Diamond has had to work quickly since the takeover to bring in both quality and quantity.

However, it has been a race against time with the other nine Prem clubs working on recruitment for this season months in advance of the Red Bulls.

New players like Christian Wade, Argentina scrum-half Simon Benitez Cruz and New Zealand import Tom Christie will be drip-fed into the squad in the weeks and months ahead as Newcastle play catch-up.

The immediate challenge is becoming more competitive in The Prem as they try to match the influence that has been so noticeable off the field.

"The club is in brilliant hands, where they're going," Diamond said.

"I don't think there is any club that could get the numbers here like we are. It's incredible.

"They create that aura and what we've got to do over the next year or two is catch that up. I'm in no doubt we will do but it's also disappointing to get a result like that with the second half performance."

New type of ownership model

Traditionally rugby clubs have relied on generous benefactors to underpin their finances - Bruce Craig at Bath and Steve Lansdown at Bristol Bears are just two.

But this relies on the deep pockets of multi-millionaires, so what happens when the money runs out?

Previous Newcastle owner Semore Kurdi had been involved with the club since 2012 but felt that he had taken them as far as he could.

So the arrival of Red Bull and change in ownership model is a significant moment for the domestic game. Eyeballs will be on the north east in the coming months to see what impact is generated.

The energy drinks company has made a huge impression in Formula 1 and football but rugby union is new territory.

Red Bull have been tight-lipped so far and all we have to go on is a statement from Oliver Mintzlaff, their CEO of Corporate Projects and Investments, who said when the takeover was announced, external: "Together, we aim to elevate rugby to new heights and deliver unforgettable moments for our fans.

"We're delighted to have acquired Newcastle Red Bulls and look forward to empowering the club to reach its full competitive potential."

'Acid test' for rugby

Red Bull will be able to call upon their expertise in other sports and as a well marketed brand at Newcastle, but it was a surprise to many when they were first linked with the ailing club.

One of those was Rob Wilson, a professor in Applied Sport Finance at UCFB, who thinks the Austrian company is dipping its toe into a market that is undervalued.

"If I was sat in a private equity house, I would be thinking that rugby was undervalued and I am pretty sure that there would be big, significant gains to be made," he said.

"Red Bull have bowled in at Newcastle and said 'we'll have a go'. If the early signs are positive, you'll see other companies try and get involved elsewhere. If not, they may hold off.

"But Red Bull have first-move advantage so if they win, they stand to win big.

"If they can't win, we'll see a reticence of people to move into the market because they'll think it's too immature for them to move into."

With the league wanting to expand back up from 10 to 12 teams, Newcastle's place looks secure and gives time for on-field improvements and marquee signings to be made ahead of the 2026-27 season.

But all the while, others will be closely watching how Red Bull get on and whether they can crack the 15-player game.

"We've had the best part of a decade of financial challenges, whether that's Saracens overspending and breaking regulations, Wasps, Worcester and London Irish going into administration, it needs that reset," Wilson added.

"Red Bull feels like the acid test. If it works, then we're in a new era for rugby union, 30 years on from when it turned professional originally."

Fireworks at Kingston Park ahead of the Prem Rugby Cup game against HarlequinsImage source, Getty Images

Image caption,

The new Newcastle owners are keen to improve the matchday experience and there have been fireworks before kick-off in both games at Kingston Park this season

Out of 'the doldrums'

One area where the new owners want to make a difference is with Newcastle's long-suffering supporters.

Every other club in The Prem has lifted a trophy since they last won something in 2004, while their very future felt in doubt the longer it went on until the takeover was announced.

They have been in dialogue with supporters' groups about putting on more buses for away games to make Newcastle the best supported visiting team and transforming home games into more than an 80-minute experience.

"We've been in the doldrums," said Jonathan Crossman of Newcastle Falcons Supporters Club.

"It didn't matter which way we went, we just couldn't get the team out of it, whereas this now is a breath of fresh air. It's fantastic. There's a lot more positivity around the place.

"Before the Harlequins game was like Christmas Eve, the excitement of it on and off the field.

"They said they are going to take it step-by-step and it's not a one or two year project, it's a long-term one."

That is music to the ears of all Newcastle Red Bulls fans and maybe, in time, for all English rugby fans.

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