Why Saudi Investment Has Not Transformed The Magpies into Championship Challengers

Eddie Howe is not given to histrionics or grand public pronouncements. Based on his standards, his press conference after the weekend's 3-1 defeat counts as a furious tirade. Newcastle took an early lead but West Ham were ahead by the interval, while also hitting the post and having a penalty revoked by VAR, leading Howe to execute a three substitutions at the break.

“That was the frustrating thing about the first half,” the coach said. “I almost could have taken anyone off and I believe that was a reflection of where we were at that stage during the match and it’s very, very rare for me to feel that way. Actually, I don’t think I have since I’ve been head coach of the club, so I felt the team needed a significant change at the break. This explains why I made those decisions.”

Three key players all came off at the interval and Newcastle did stabilise to an extent in the second half, but never appearing like they might fight back into the game against a side that had won only one of their last nine league matches. Considering the congestion the middle of the standings is, with a mere three-point gap dividing the top spots from mid-table, and nine points between the upper and lower ranks, a sequence of twelve points from ten matches has not placed the Magpies stranded but, similarly, they cannot finish the season in thirteenth place.

The Issue of Perception

The problem partially is one of perception. In the Saudi Public Investment Fund, the club have the richest owners in the world. The assumption when the PIF acquired a majority stake of the team in recent years was that it would bring a transformative effect, similar to the former Chelsea owner had at Chelsea or the City Group did at the Etihad. The distinction is that both of those investors assumed control prior to the introduction of FFP regulations (while the current charges against City concern whether they violated those regulations after they were in place).

Profit and sustainability restrictions limit the capacity of owners, no matter how wealthy, to spend money on their squads and so in that sense probably would have hindered every Saudi attempt to elevate Newcastle to the standard of City. However there is no need for Newcastle’s expenditure to have been quite as cautious as it has been; they might have invested further and stayed inside the limit – or simply taken a fairly minor Uefa fine given their major problem is more with the European than the Premier League rules.

Stadium Investment and Financial Regulations

Besides which, stadium development is excluded from PSR assessments; the simplest method to increase revenue to create more financial flexibility would be to extend or renovate the arena. Given the location of St James’ Park, with protected structures on two sides, practically that likely implies constructing an completely new venue. There was talk in March of possibly making the nearby relocation to Leazes Park – resistance from local groups might have been overcome with a commitment to build a new park on the existing ground location – but there has been any progress on that plan. There has been significant cutbacks from the PIF on a variety of initiatives as it refocuses on domestic affairs; the attitude to Newcastle appears completely in alignment with that strategic shift.

Player Sales Situation

The Alexander Isak episode was born of that conflict. A more confident management might have framed his sale as essential to release funds for further spending; rather there was a vain effort to keep him. That meant Newcastle started the campaign amidst a feeling of frustration despite the signings of Woltemade, Yoane Wissa, Jacob Ramsey, Malick Thiaw and Anthony Elanga. The start was mixed: a single victory in their first six games.

But it appeared a corner was reached. They secured five victories in six matches before the weekend, a run that featured convincing wins of Union Saint-Gilloise and a Portuguese club in the European competition. This explains the display against West Ham was so surprising. The problem maybe is that Newcastle’s style is extremely intense, very high-octane; a minor decrease in energy can have profound consequences. Perhaps the pressure of Premier League, Champions League and cup competition, five fixtures in 15 days, had taken its toll. The German forward featured in each of those matches and appeared particularly weary.

Reality of Modern Soccer

This is the nature of modern football. Managers have to be ready to make changes. Howe has been unlucky that the forward's fitness issue has left him lacking forward choices but, regardless of how reasonable the explanations, the weekend's performance was inexcusable –particularly following scoring first at a stadium primed to turn on its home team.

The Newcastle boss will hope it was merely a temporary setback, one of those days when everybody is off-colour at once, but if the Magpies are to qualify for the Champions League next season, let alone eventually launch an actual championship bid, they must not be as inconsistent as this.

Jeffrey Young
Jeffrey Young

A passionate writer and traveler sharing insights on lifestyle and culture from across the UK and beyond.