Why Saudi Investment Has Not Turned Newcastle into Title Contenders

Eddie Howe is not given to dramatics or grand media pronouncements. Based on his usual demeanor, his press conference following Sunday’s loss to West Ham qualifies as a angry tirade. His side took an early lead but the opposition were ahead by the interval, while also hitting the post and having a penalty overturned by VAR, leading Howe to make a three substitutions at the half-time.

“That was the frustrating thing about the first half,” the coach said. “Virtually any player could have been substituted and I believe this indicated of our performance level in that moment in the game and it's extremely uncommon for me to feel that way. Actually, I cannot recall I have during my tenure as manager of the club, therefore I believed the squad required some shaking up at the break. That’s why I did what I did.”

Anthony Gordon, Nick Woltemade and Emil Krafth were substituted at the interval and Newcastle did stabilise to an extent in the latter period, but never really looking like they could fight back into the contest against a side that had secured just a single victory of their previous nine fixtures. Considering the congestion the centre of the standings is, with just three points separating third from 11th, and nine points between the upper and lower ranks, a sequence of twelve points from ten matches has not left Newcastle adrift but, similarly, they must not finish the season in thirteenth place.

The Problem of Expectations

The problem to an extent is one of public view. In the Saudi Public Investment Fund, the club have the richest owners in the globe. The assumption at the time the Saudi fund bought 80% of the team in 2021 was that it would have a transformative effect, similar to the former Chelsea owner had at Chelsea or the City Group did at the Etihad. The difference is that those two owners assumed control before the introduction of FFP regulations (while the current allegations against City relate to whether they breached those guidelines after they were in place).

Profit and sustainability restrictions limit the capacity of owners, no matter how wealthy, to invest funds on their squads and therefore likely might have slowed every Saudi effort to elevate Newcastle to the level of Manchester City. But it wasn't necessary for Newcastle’s expenditure to have been quite as cautious as it has been; they could have spent more and stayed inside the limit – or just accepted a fairly minor Uefa fine since their major problem is more with the continental than the Premier League rules.

Infrastructure Spending and Financial Rules

Besides which, infrastructure spending is exempted from Profit and Sustainability calculations; the easiest way to increase revenue to generate more financial headroom would be to expand or renovate the stadium. Considering the location of St James’ Park, with protected structures on two sides, in reality that likely implies constructing an completely new venue. Rumors circulated in spring of possibly making the nearby relocation to Leazes Park – opposition from local groups could surely have been overcome with a promise to create a replacement green space on the existing ground location – but there has not been any progress on that proposal. There has been substantial retrenchment from the Saudi fund on a range of initiatives as it shifts focus on domestic affairs; the approach to the football club appears entirely in alignment with that strategic shift.

Player Sales Situation

The star striker episode was born of that tension. A bolder management could have portrayed his transfer as essential to release capital for additional spending; instead there was a vain effort to keep him. That meant the team began the season amidst a feeling of disappointment despite the acquisitions of several new players. The opening was mixed: one win in their first six fixtures.

But it appeared a turning point was reached. They had won five victories in six matches prior to the weekend, a streak that featured convincing wins of a Belgian side and a Portuguese club in the Champions League. That’s why the performance against the Hammers was so surprising. The problem perhaps is that the team's style is extremely intense, high-energy; a slight drop-off in energy can have profound effects. Maybe the strain of Premier League, Champions League and Carabao Cup competition, five games in a fortnight, had taken its toll. Woltemade started all five games and looked particularly fatigued.

The Nature of Modern Soccer

That’s the nature of modern football. Coaches must be ready to make changes. Howe has been unlucky that the forward's injury has meant he is short of attacking options but, regardless of how reasonable the explanations, the weekend's performance was unacceptable –particularly following scoring first at a ground ready to turn on its own side.

Howe will hope it was merely a temporary setback, an off-day when all players is below par at once, but if Newcastle are to qualify for the Champions League in the future, let alone eventually mount an genuine championship bid, they cannot be as inconsistent as they have been.

Kevin Molina
Kevin Molina

A tech enthusiast and gaming analyst with a passion for exploring cutting-edge digital experiences and sharing actionable insights.