The Reasons Middle Eastern Investment Has Not Transformed Newcastle into Championship Contenders

The Newcastle manager isn't typically prone to histrionics or sweeping media statements. Based on his usual demeanor, his press conference after the weekend's 3-1 defeat counts as a furious outburst. Newcastle took an early lead but the opposition took the lead by half-time, while also striking the woodwork and seeing a spot-kick overturned by VAR, leading Howe to execute a triple change at the half-time.

“The opening period was particularly irritating,” Howe said. “Virtually any player could have been substituted and I believe that was a reflection of where we were at that stage during the match and it's extremely uncommon for me to feel that way. Actually, I cannot recall having done so during my tenure as manager of the club, therefore I believed the squad needed some shaking up at half-time. That’s why I made those decisions.”

Three key players all came off at the interval and the team did stabilise somewhat in the latter period, but never really looking like they could fight back into the contest against an opponent that had won only one of their last nine league matches. Considering how packed the middle of the standings is, with just three points separating the top spots from mid-table, and nine points between second and 17th, a run of twelve points from 10 games has not placed the Magpies stranded but, similarly, they must not finish the season in thirteenth place.

The Issue of Perception

The challenge to an extent is one of perception. With the Saudi PIF, the club have the wealthiest backers in the globe. The assumption when the Saudi fund acquired 80% of the team in recent years was that it would have a game-changing impact, as the former Chelsea owner had at Chelsea or Sheikh Mansour did at the Etihad. The difference is that both of those investors took over prior to the introduction of financial fair play regulations (and the current allegations against Manchester City relate to if they breached those guidelines once they were in place).

Financial restrictions limit the ability of proprietors, however rich, to spend money on their teams and so in that sense likely might have hindered every Saudi attempt to elevate the team to the standard of City. But it wasn't necessary for Newcastle’s spending to have been so restrained as it has; they might have spent more and stayed inside the limit – or just accepted a relatively meagre European penalty given their major issue is more with the continental than the domestic rules.

Stadium Investment and PSR Rules

Besides which, infrastructure spending is exempted from Profit and Sustainability calculations; the simplest method to increase revenue to generate more PSR headroom would be to expand or renovate the stadium. Given the location of St James’ Park, with listed buildings on multiple sides, practically that probably implies building an completely new venue. Rumors circulated in spring of possibly undertaking the nearby relocation to a local park – resistance from local groups could surely have been surmounted with a commitment to build a new park on the existing ground location – but there has been any progress on that plan. There has occurred substantial cutbacks from the Saudi fund on a variety of projects as it shifts focus on domestic affairs; the approach to Newcastle appears entirely in alignment with that change of approach.

The Alexander Isak Saga

The star striker episode was arose from that conflict. A bolder leadership could have portrayed his sale as necessary to release capital for further spending; instead there was a unsuccessful effort to keep him. This resulted in Newcastle started the campaign amidst a feeling of disappointment even with the acquisitions of Woltemade, Yoane Wissa, Jacob Ramsey, Malick Thiaw and Anthony Elanga. The start was mixed: one win in their initial six games.

But it seemed a corner was reached. They secured five in six prior to Sunday, a run that included demolitions of Union Saint-Gilloise and Benfica in the Champions League. That’s why the performance against the Hammers was so surprising. The issue maybe is that the team's approach is extremely intense, high-energy; a slight drop-off in intensity can have profound consequences. Perhaps the pressure of domestic, European and cup matches, five fixtures in 15 days, had got to them. The German forward started all five games and appeared particularly weary.

The Nature of Modern Football

That’s the reality of modern football. Managers must be ready to make changes. Howe has been unfortunate that Wissa’s fitness issue has left him lacking attacking options but, no matter how reasonable the reasons, Sunday’s performance was unacceptable –especially following taking the lead at a stadium ready to turn on its own side.

Howe will hope it was merely a temporary setback, one of those days when everybody is off-colour simultaneously, but if Newcastle are to qualify for the European competition in the future, let alone one day launch an genuine championship bid, they must not be as inconsistent as this.

Carolyn Saunders
Carolyn Saunders

A tech historian and cybersecurity expert passionate about preserving and securing vintage computing systems.