Concerns inside Kensington Palace are intensifying as senior aides warn that new disclosures about Sarah Ferguson's past ties to Jeffrey Epstein could trigger reputational fallout for the royal household and complicate Princess Kate's efforts to maintain stability during her recovery. According to individuals familiar with internal discussions, the Princess of Wales is in a state of "near panic" as advisers assess the damage from leaked correspondence in which Ferguson praised Epstein as a "steadfast, generous and supreme friend." With several charities severing ties to Ferguson and further Epstein files expected to be released by President Donald Trump, officials privately concede that the volatility surrounding the Duchess of York poses a direct risk to the monarchy's ongoing crisis-management efforts.
The anxiety comes at a delicate time for the Princess of Wales, who has spent much of the year away from public duties while undergoing preventative cancer treatment and focusing on her three children. Although she has avoided public comment on the scandals engulfing Prince Andrew and Ferguson, those familiar with the situation say the mounting disclosures deepen worries that Ferguson could become financially desperate-and unpredictable.
Sources told RadarOnline.com that Kate's "biggest worry" is the possibility that Ferguson agrees to a "TV sit-down and tell-all memoir" as she faces the potential loss of Royal Lodge, the $40 million residence she has shared with Andrew in Windsor Great Park. The King has reportedly cut financial support and demanded that the Duke and Duchess vacate the property, eliminating a key source of security for Ferguson and heightening pressure for her to seek commercial income.
The prospect of a public interview or memoir has raised alarm given Ferguson's recent removal from charitable roles and the collapse of longstanding institutional support. One insider said Kate "will not abide" Ferguson entering the media marketplace with a monetized account of royal life, especially after being "ousted from their lodgings and stripped of their royal titles over the Epstein scandal."
The catalyst for the latest crisis is the publication of emails in which Ferguson apologized to Epstein and expressed remorse for making him feel "hellaciously let down." Ferguson wrote: "I must humbly apologize to you and your heart for that," a message that contradicted public distancing she adopted after revealing in 2011 that she accepted $20,000 from Epstein-an arrangement she described then as a "terrible, terrible error of judgment."
The warm tone of the correspondence triggered swift institutional consequences. At least seven charities, including The Teenage Cancer Trust-one of her longest associations-cut ties following what one source described as "widespread condemnation." The fallout has reignited scrutiny of her past decisions while reviving questions about the broader royal response to Epstein's network.
Those close to Ferguson describe her as overwhelmed. One insider said "she has always been volatile and fragile, but this situation is sending her spiraling," adding that "she is really grasping at straws to try and secure her future." With financial pressures mounting and public support evaporating, advisers fear she may pivot toward high-visibility media opportunities that could expose private family dynamics.
The strain is also being felt by Princess Beatrice and Princess Eugenie, who have sought to maintain roles within the royal orbit while publicly distancing themselves from their parents' controversies. A source said "the optics for the public will be terrible" if either daughter appears to support Ferguson or Andrew financially amid their ongoing scandals.
