Diamond is referring to the demise of Worcester Warriors, London Irish and Wasps, who were not able to survive crippling financial problems.
In fact, he was director of rugby at Worcester when they went out of business in 2022.
Newcastle have been challenged financially, but they are still in the fight. Life is not easy as the Falcons battle against the odds, operating with a slimline squad on a much lower budget than the other nine Premiership clubs.
Their best players get picked off by rivals with loftier ambitions and deeper pockets, as shown by Argentina lock Pedro Rubiolo heading to Bristol Bears and, only this week, England wing Adam Radwan leaving immediately to go to Leicester Tigers.
There is a potential relegation play-off at the end of the season to preserve their Premiership status, and they were the only club not to secure a single point in the group stages of either the Champions Cup or the Challenge Cup.
But Diamond remains honest and upbeat about the challenges he faces at Kingston Park in rugby’s most northerly outpost.
“I think I knew the job in hand and what I was coming into,” he said.
“I am a positive force in the building, it’s a great environment to work in, the players maintain a real professionalism about them even when the results don’t go their way.
“The back office is in good spirits, too, so you wouldn’t think it is a club that doesn’t win many games.
“When the good times come, which they will, periods like the last 12 months will at least bring continuity.”