King Charles and Queen Camillaare said to be appalled by new claims linkingSarah Fergusonto alleged secret hotel meetings with US rapperDiddy, according to royal insiders who say the story has added another damaging layer to theDuchess of York's long record of scandal. The allegations, reported last week and denied by both sides, centre on claims of luxury suite trysts and have reportedly unsettled senior royals as the monarchy tries to project calm and stability.

The latest uproar follows months of difficult headlines for Ferguson and her ex-husband,Prince Andrew. Andrew's long association with Jeffrey Epstein has already cost him his HRH style, his public role and his title prince after he settled Virginia Giuffre's civil sexual assault case in 2022, while continuing to deny the allegations. Ferguson also gave up her duchess title in October after 2011 correspondence emerged in which she described Epstein as her 'steadfast, generous and supreme friend.'

According toCloser, the dispute stems from allegations in royal authorAndrew Lownie's bookEntitled, which claims Ferguson and Diddy, 56, began a secret sexual relationship in the early 2000s. Lownie says they first met at a 2002 party hosted by Ghislaine Maxwell and that by 2004 they had entered a 'friends with benefits' arrangement that allegedly continued for several years.

The book also claims Diddy, who is described as 'royal family obsessed,' boasted about his relationship with Ferguson and allegedly made offensive remarks about her daughters. Lownie further alleges the pair met in hotel suites costing as much as £50,000 a night and that Ferguson introduced Princess Beatrice and Princess Eugenie to the rapper on several occasions.

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Representatives for both Diddy and Ferguson have dismissed the account, calling it 'utterly ridiculous gossip' and 'fabricated nonsense' respectively. None of the claims has been tested in court, and there is no independent evidence in the public domain to verify the alleged affair or the reported hotel bills.

Even so, a royal source quoted byClosersays the allegations have sparked anger behind palace walls. The insider said the volume of stories about Ferguson's past connections to controversial figures has left senior royals appalled, adding that courtiers were 'deeply embarrassed' when Diddy's name was brought into the mix.

The source went on to say King Charles and Queen Camilla were particularly upset, with Camilla said to be furious that a period of royal scandal she believed was fading had returned to the spotlight. The suggestion from those around the couple is that, true or not, any link to another man facing sex crime allegations is toxic for the monarchy's reputation.

Diddy went on trial in May 2025 on charges of sex trafficking, racketeering and transportation to engage in prostitution. He was found not guilty of all but two transportation counts, fined $500,000, and is currently serving a four year and two month prison sentence. Against that backdrop, even an unproven historical connection to a British royal is politically and reputationally explosive.

The fallout is said to have reopened old wounds forPrincess Beatrice and Princess Eugenie, as well as for a palace already weary of renewed scrutiny. Closer's source saysPrince William is furiousthat the family is being pulled back into old scandals just as he and the Princess of Wales are trying to present a more modern, steady image of the monarchy. Kate is also described as finding the situation upsetting and exhausting, with a preference for stability and calm over the sense of permanent chaos these rows generate.

Source: International Business Times UK