The inside story of Newcastle Red Bulls' bombshell Steve Diamond sacking: How he found out, the players' reaction and what's really going on with Gregor Townsend's role as the real power brokers are revealed

Red Bull have a sporting reputation for efficiency, excellence and elite performance, but on Tuesday evening, leading executives from the Austrian drinks brand informed Steve Diamond he was being relieved of his position as Newcastle director of rugby via a Zoom call.

At midday on Wednesday, Newcastle’s players were left shellshocked when they were told of Diamond’s departure by the same means of communication and that Gregor Townsend would be joining as an ‘advisor and consultant’ alongside his current role as Scotland coach. Diamond survived just one match under the new ownership.

When Red Bull completed their Newcastle takeover in the summer, it always felt like change was inevitable. Townsend was almost immediately linked with replacing Diamond directly, only to re-sign with his homeland on a deal through to the 2027 World Cup in Australia.

But on Wednesday, Red Bull pressed the fast forward button on their future plans, officially confirming Diamond was leaving with immediate effect and the hiring of a plethora of new executives – many of whom are close to Townsend – behind the scenes.

The decision to dispense with Diamond and the means of doing so was brutal. And doing it now makes for odd timing, coming one week into the new season. It is understood there has been no falling-out or row behind the scenes.

Frankly, there can be no escaping the fact Diamond deserved better than to be moved on through a laptop screen. Alan Dickens, a close friend of his, has been promoted to head coach and his first game in charge of the Red Bulls will be at Exeter on Saturday.

Newcastle’s official press release made no mention of Townsend, 52. But in confirming their coach’s new part-time role – one which is initially going to be for a maximum of 30 days per year – Scottish Rugby insisted there were benefits to their organisation of Townsend helping his new club side. 

They stressed that Townsend was joining Red Bull’s rugby arm and not Newcastle specifically. But this is a patent nonsense - they are one and the same thing.

Red Bull only has Newcastle in its rugby arm and it is difficult, for example, to imagine Townsend advising Max Verstappen on how to drive the company’s Formula 1 car.

Daily Mail Sport understands that while Townsend will initially join Newcastle part time, it merely lays the groundwork for him to sign on permanently come the end of the 2027 World Cup. 

Newcastle said Diamond’s departure was one of ‘several changes to the management structure to reflect the club’s deep and lasting commitment to developing local rugby talent through a strengthened academy program, delivering a world-class fan experience and achieving sporting excellence for years to come’.

A Scottish Rugby spokesperson said: ‘Red Bull have appointed Gregor Townsend as strategic advisor and consultant on their global rugby strategy with Scottish Rugby’s full knowledge and support. This is a great opportunity for Gregor with one of the biggest sporting organisations in the world. 

'He will be participating in high-level strategic conversations with a powerhouse in sport and we see that as being beneficial to Scottish Rugby going forward. Gregor remains fully committed to his role as Scotland head coach and we see this new role working alongside that well.’ 

There is an element of truth to Scottish Rugby’s PR powerplay in that their national side might well benefit from Townsend working with Red Bull.

But it also raises significant questions about his commitment to Scotland given he will have half an eye elsewhere on a job where his long-term future is set to lie. Many pondered the wisdom of Scotland extending Townsend’s contract and this will only add to fuel to the doubters’ fire. 

Should the team struggle this November and again fail to show signs of meaningful progression in the 2026 Six Nations, Townsend will undoubtedly come under added pressure.

He has been in his current post with the SRU since 2017, and despite overseeing a golden generation of talent, he has little to show for it beyond his Calcutta Cup wins, finishing above fourth only once in eight Six Nations campaigns and failing to get out of the pool stage at either of the World Cups he has led Scotland to.

From Scotland’s and Townsend’s viewpoint, it seems a totally avoidable and unwise move. If Townsend is so keen to work for Red Bull, why didn’t Scotland just replace him with Glasgow’s Franco Smith?

Things are equally perplexing went studied through a Newcastle lens. Diamond was given the green light to sign players such Wales and Lions great Liam Williams, former England wing Christian Wade, Japan No 8 Amanaki Mafi and New Zealand flanker Tom Christie from the Crusaders.

Why give Diamond money to spend in the market only then to move him on after a single league game? One wonders what that trio are thinking after all relocating to the North East based on the assumption they would be working under Diamond’s tutelage.

It can't have been a snap decision after the home defeat by Saracens last Friday. Newcastle were outplayed but that is no mark on Diamond given the lack of time this squad has had to gel compared to their opponents.

Newcastle’s players are set to learn more from their Red Bull bosses in another meeting on Thursday. They deserve answers.

Dickens is an excellent coach and well liked in English rugby circles. But one has to wonder whether Newcastle are better off without Diamond, certainly as Townsend is not a full-time replacement. It will be fascinating to see how much input he has. For a number of reasons, it feels like Townsend won’t be a background presence.

His agent, Duncan Sandlant, is a key figure at global sports agency Wasserman who are understood to have close ties to Red Bull.

It is also surely no coincidence that the men Newcastle confirmed in key back-room roles on Wednesday are either Scottish or have links to Scotland or Townsend directly.

Neil McIlroy, John Fletcher and Jonny Petrie will soon arrive at Kingston Park as sporting general manager, academy and pathways director and managing director respectively. Newcastle rightly see their academy as an area for improvement.

Fletcher is a canny hire in that regard, joining from Scottish Rugby. Before that, he was highly regarded for his work at the RFU bringing through a talented generation of players.

McIlroy and Townsend know each other well given they were both Border Reivers players, while Petrie – who didn’t excel as Ulster’s chief executive – is another former Scottish international and a back-row who played with Townsend.

Their recruitment off-field, as well as what Newcastle have done on it, has been driven by Oval Insights – a data-driven organisation popular with leading rugby sides. 

Red Bull’s arrival at Newcastle in the summer was seen as a huge boost for England’s club game with PREM chief executive Simon Massie-Taylor delighted at the move. But with Diamond now departed and a heavy Scottish feel to the team’s latest appointments, it may well be that it is the game north of the border that benefits most from it. 

Scotland have struggled badly to produce players in recent years, with their age grade sides underperforming and very little talent coming through to replace the likes of Finn Russell.

There can be no doubt they could benefit from having a strong Scottish playing and coaching influence at Newcastle, particularly as they have only two professional teams in Glasgow and Edinburgh. 

Whatever happens, it is now clear Newcastle’s Red Bull revolution is very much underway.

So far, it has represented good news for Townsend and bad for Diamond. But one thing is for sure, more change is close to certain in the coming weeks and months. There might be a need for a few more Zoom calls.