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The Reasons Saudi Money Has Not Transformed Newcastle into Championship Contenders

Eddie Howe isn't typically given to dramatics or grand media pronouncements. Based on his usual demeanor, his press conference following Sunday’s 3-1 defeat counts as a angry outburst. Newcastle took an early lead but the opposition were ahead by half-time, as well as striking the woodwork and seeing a spot-kick overturned by VAR, leading Howe to make a three substitutions at the break.

“The opening period was particularly irritating,” Howe stated. “I almost could have taken anyone off and I think that was a reflection of where we were in that moment during the match and it’s very, very rare for me to feel that way. In fact, I don’t think I have since I’ve been manager of the club, so I felt the squad needed a significant change at half-time. That’s why I did what I did.”

Three key players were substituted at the interval and the team did stabilise to an extent in the second half, but never appearing like they might fight back into the contest against a side that had won only one of their previous nine league matches. Considering the congestion the middle of the table currently is, with just three points dividing the top spots from mid-table, and a nine-point margin between the upper and lower ranks, a sequence of twelve points from ten matches has not left the Magpies stranded but, equally, they must not end the campaign in thirteenth place.

The Issue of Perception

The problem partially is one of perception. With the Saudi PIF, Newcastle have the wealthiest owners in the globe. The assumption at the time the Saudi fund acquired a majority stake of the club in recent years was that it would have a transformative effect, similar to the former Chelsea owner achieved at Stamford Bridge or Sheikh Mansour did at the Etihad. The distinction is that both of those investors assumed control before the introduction of FFP regulations (while the current charges against Manchester City concern if they violated those guidelines once they were in place).

Profit and sustainability regulations restrict the ability of owners, no matter how wealthy, to invest funds on their squads and so in that sense probably would have slowed any Saudi effort to elevate Newcastle to the level of City. However there is no need for the club's expenditure to have been quite as cautious as it has; they might have invested further and stayed inside the threshold – or just accepted a relatively meagre Uefa fine since their big issue is primarily with the continental than the domestic regulation.

Infrastructure Spending and PSR Regulations

Additionally, stadium development is exempted from PSR calculations; the easiest method to increase revenue to generate more PSR flexibility would be to extend or redevelop the arena. Considering the site of the home ground, with protected structures on multiple sides, practically that likely means building an completely new stadium. There was talk in spring of potentially undertaking the short move to Leazes Park – opposition from local groups might have been surmounted with a promise to create a replacement green space on the existing stadium site – but there has not been any progress on that plan. There has been significant cutbacks from the PIF on a range of initiatives as it shifts focus on local investments; the attitude to Newcastle seems entirely in keeping with that strategic shift.

Player Sales Saga

The Alexander Isak saga was born of that conflict. A more confident management might have portrayed his sale as necessary to release funds for further spending; instead there was a unsuccessful attempt to keep him. That meant the team began the season amidst a feeling of disappointment despite the signings of several new players. The start was indifferent: a single victory in their initial six games.

Yet it seemed a corner had been turned. They secured five in six prior to the weekend, a streak that featured convincing wins of Union Saint-Gilloise and Benfica in the Champions League. That’s why the performance against the Hammers was so surprising. The issue perhaps is that Newcastle’s approach is very aggressive, very high-octane; a slight drop-off in intensity can have significant consequences. Maybe the pressure of domestic, Champions League and cup matches, five games in 15 days, had taken its toll. The German forward started each of those matches and appeared especially weary.

Reality of Modern Football

That’s the reality of modern football. Managers must be prepared to make changes. The manager has been unfortunate that Wissa’s fitness issue has left him lacking attacking options but, regardless of how reasonable the reasons, the weekend's performance was inexcusable –particularly following scoring first at a stadium ready to criticize its own side.

Howe will wish it was just a blip, one of those days when everybody is off-colour at once, but if Newcastle are to secure the Champions League next season, let alone eventually launch an genuine title challenge, they cannot be as unreliable as this.

The writer

Cynthia Campbell

Urban planner and writer passionate about sustainable city development and community engagement.

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