The Falcons and owner Semore Kurdi are actively seeking new investment into the club or face having to ask for a loan to see them through the 2025-26 campaign.

“We will not be recruiting new players until there is some clarification of investment coming in or a loan, or any other option that may be out there,” said Diamond.

The troubled club are currently propping up the Premiership with just two wins from 11 games and are facing a third consecutive season of finishing bottom.

A Sky News report at the weekend claimed talks had begun between Premiership Rugby and CVC Capital Partners, which owns more than a quarter-stake in the competition, about providing Newcastle with a loan worth about £4m to ensure they meet the financial criteria to compete next season.

The league is desperate to ensure that Newcastle do not suffer the same fate as the now defunct trio of Worcester Warriors, Wasps and London Irish, who each went out of business between September 2022 and June 2023.

Diamond was at Worcester when they went under, but insists Newcastle are nowhere near that position.

“The financial management declaration is the end of April, so we are still within that due process of speaking to investors and figuring out other options – so we are well within our timeframe,” he said.

“This year has gone remarkably well financially, compared to where we were, even though we are still losing over £2m so I’m confident of retaining players and retaining staff with a view we’ll be challenging to stay in the Premiership next year.”

Diamond confirmed that 28 players have a contract either signed or ready for next season, among a squad which would be topped up by senior academy players.

A handful of other players have uncertain futures, while talks with potential new signings have been put on hold.

That would leave a shortfall of about six players Diamond would hope to recruit to complete his squad, if and when the new money comes in.

Already operating with a playing budget vastly inferior to the rest of the Premiership, the club is on course to finish bottom three years running.

Newcastle did not win a league game between March 2023 and October 2024, a run of 25 matches. Last season, they lost all 18 Premiership games.

Costs have been drastically reduced in a bid to reduce financial losses, but that has resulted in the club becoming the league’s poor relations.

Owner Kurdi put the club up for sale in November but, while there has been interest, nothing concrete has emerged.

It is a concerning time but Diamond insists everyone at Kingston Park is aware of what is happening.

“We went through a real debacle at Worcester where there was no real clarity or honesty knocking around,” he recalled.

“This is totally different. The squad and the staff have been informed the [same] day I’ve been informed of where we are. There is no panic.

“We are leaning on the right people in the business to sort this out – the shareholders – and once the information is given I will inform the staff and players exactly where we’re at.

“I don’t think there will be any mystery illnesses or people crying off fearing they are not going to get paid at the end of the month. That isn’t even in our vocabulary here. We’re in good fettle.”

With Championship leaders Ealing Trailfinders failing to meet the minimum standards criteria to enter the Premiership, there will be no promotion into, or relegation from, the top division in 2025-26.

That underlines why Premiership Rugby would be so keen to keep Newcastle going.

Diamond, speaking before the Ealing news became public, gave his take on the financial realities regarding the gap between the two divisions.

“If you come up to the Premiership, losing £500,000 because you are spending £1m on your team, you are going to lose 100-0 every week,” he said.

“If you spend £4m, you are going to end up with my team, which gets beaten every week. If you want to go where Sale Sharks are, you are going to have to go to £8m, so you are going to lose between £8-9m in year one.

“Then you have to sort out your stadium, and get your coaching staff. For a 50-man squad, you need five physios, two doctors, four strength and conditioners, you need an academy, it goes on and on and on.

“And you don’t want to come up for one year, you come up for three years and you’re now £30m out.

“That is the reality of it and that’s why not many are knocking on the RFU’s [Rugby Football Union’s] door saying they want to come up.”