After claims emerged of an alleged romance between Sarah Ferguson and disgraced rapper Diddy, insiders tell Closer that members of the monarchy have reached breaking point…
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After months already clouded by controversy, shocking new allegations surfaced recently, suggesting Sarah Ferguson had been involved in a long-running, secret ‘friends with benefits’ relationship with disgraced rapper Diddy.
Sources now say the revelations about Andrew Mountbatten-Windsor’s ex-wife have left the royal household reeling. One insider explains, ‘The sheer number of stories surfacing about Sarah’s former connections to controversial figures has left senior royals absolutely appalled. People were completely aghast when Diddy’s name was thrown into the mix – even hearing Sarah’s name mentioned in the same breath as him has horrified the royal family.
‘Diddy’s another big name linked to a high-profile sex scandal – and Sarah is, again, right there in the thick of it. It’s deeply embarrassing. Whether or not the affair claims are true almost became secondary once those headlines were out – the damage was done instantly. King Charles and Queen Camilla especially find the whole circus mortifying. Camilla’s especially furious, she genuinely thought that chapter of royal scandal was starting to fade into the background.’
In his latest book, Entitled, royal biographer Andrew Lownie alleges that Diddy, 56 – born Sean Combs – first crossed paths with Sarah, 66, in 2002 at a gathering hosted by Ghislaine Maxwell, who is now serving a 20-year prison sentence. According to the author, the pair allegedly embarked on a ‘secret friends with benefits’ relationship two years later, which is said to have continued for some time.

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Lownie further claims their meetings took place in luxury hotel suites costing £50,000 per night. He also alleges that the ‘royal family-obsessed’ Diddy – formerly known as P Diddy – boasted about ‘slamming’ Sarah and reportedly once remarked that ‘he could not wait until Fergie’s daughters come of age’. It has additionally been claimed that the former Duchess of York introduced her daughters to him on numerous occasions.
In May 2025, Diddy stood trial on charges including sex trafficking, racketeering and transportation to engage in prostitution. He was acquitted of all but two transportation-related counts and received a $500,000 (£370,000) fine. He is currently serving a prison term of four years and two months.
Although Diddy’s spokesperson dismissed the allegations in Lownie’s book as ‘utterly ridiculous gossip’, and Fergie’s own representative described them as ‘fabricated nonsense’, insiders insist the association alone is deeply humiliating for the monarchy.
The controversy follows months of shocking headlines involving Sarah and her former husband, Andrew Mountbatten-Windsor, over their connections to convicted paedophile Jeffrey Epstein.
Despite Andrew’s continued denial of wrongdoing, he relinquished his HRH title before paying up to £12 million in 2022 to settle Virginia Guiffre’s civil sexual assault case. His ‘prince’ title was removed the following month.

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On 19 February – which was his 66th birthday – Andrew was arrested on suspicion of misconduct in public office as authorities reviewed claims he shared confidential information with Epstein during his tenure as the UK’s trade envoy. He was taken in for questioning at a police station and was released under investigation later that day.
Meanwhile, Fergie stepped back from using her duchess title in October after letters from 2011 surfaced, revealing she had described Epstein – who died in 2019 while awaiting trial on sex trafficking charges – as her ‘steadfast, generous and supreme friend’.
Given this history, it’s said that senior figures including Charles, Camilla, and the Prince and Princess of Wales are deeply unsettled by the renewed headlines – and are terrified at what could come out next.
‘Prince William is furious,’ the source continues. ‘He feels the royals are constantly being dragged into old scandals, when they should be moving forward. Kate finds the whole thing incredibly upsetting and exhausting and wants stability and calm around the monarchy. Instead, it feels like there’s permanent chaos and lurid headlines. Charles is completely worn down by it all. He’s spent years trying to steady the monarchy – and these old associations and rumours have come roaring back into public conversation again, unsettling the institution.’
The situation has reportedly been especially painful for daughters Beatrice, 37, and Eugenie, 36, who is expecting her third child. While Beatrice has tried to shield her younger sister from the drama, insiders say the emotional toll is mounting.

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‘The renewed attention has completely rattled them – particularly Princess Beatrice, who is exhausted from trying to steady both parents through endless damaging headlines. She’s struggling,’ the source reveals.
‘They love their mother and want to protect her, but it’s too much for the sisters. Beatrice is carrying everybody emotionally, and it’s a huge burden. There’s also a real effort to shield Eugenie from stress while she’s carrying the baby. This should be a happy time for her, but it’s turning into a nightmare.’
According to the insider, there are also wider concerns within royal circles that further disclosures could surface. ‘There’s a panic that there may be more revelations linked to Fergie’s past social circle – people are asking what could come out next and who else she may’ve crossed paths with,’ the insider says. ‘Every time the Palace thinks things are calming down, something else happens. It feels neverending.’
While Sarah – who was seen publicly last month for the first time in six months, when she was photographed outside a £2,000-a-night chalet at an exclusive Alpine ski retreat – is said to be eager for a return to normal life, the family remains cautious.
‘Sarah hates feeling isolated and hidden away, but bringing her back into the public eyewould be disastrous,’ the source says. ‘She’s unpredictable – and that’s really what scares the family the most.’
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