Why Saudi Investment Has Not Transformed Newcastle into Championship Contenders

Eddie Howe isn't typically prone to dramatics or grand media pronouncements. So by his usual demeanor, his press conference following the weekend's 3-1 defeat qualifies as a angry tirade. His side scored first but the opposition were ahead by the interval, as well as striking the woodwork and having a penalty revoked by VAR, leading Howe to make a triple change at the break.

“The opening period was particularly irritating,” the coach stated. “I almost could have taken anyone off and I believe that was a reflection of our performance level at that stage in the game 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, therefore I believed the squad needed some shaking up at half-time. This explains why I did those decisions.”

Anthony Gordon, Nick Woltemade and Emil Krafth were substituted at half-time and the team did stabilise to an extent in the latter period, without ever appearing like they could get back into the contest against an opponent that had won only one of their previous nine league matches. Considering how packed the middle of the standings is, with just three points dividing third from 11th, and a nine-point margin between second and 17th, a run of 12 points from ten matches has not left the Magpies adrift but, equally, they cannot finish the season in thirteenth place.

The Issue of Perception

The challenge partially is one of perception. With the Saudi PIF, the club have the richest backers in the globe. The expectation at the time the PIF acquired a majority stake of the team in recent years was that it would have a game-changing impact, similar to the former Chelsea owner had at Chelsea or the City Group did at the Etihad. The difference is that those two owners took over before the introduction of FFP rules (while the ongoing allegations against Manchester City concern if they violated those regulations after they were implemented).

Financial restrictions limit the ability of owners, however rich, to spend money on their teams and so in that sense likely would have slowed any Saudi attempt to elevate the team to the level of City. However it wasn't necessary for the club's expenditure to have been quite as cautious as it has been; they could have invested further and remained within the limit – or just accepted a relatively meagre Uefa penalty since their major issue is primarily with the continental than the domestic regulation.

Stadium Investment and Financial Regulations

Additionally, infrastructure spending is excluded from Profit and Sustainability calculations; the simplest way to raise income to generate additional PSR flexibility would be to expand or renovate the arena. Considering the site of St James’ Park, with listed buildings on multiple sides, in reality that probably implies building an entirely new stadium. There was talk in March of potentially undertaking the short move to Leazes Park – opposition from local groups could surely have been overcome with a commitment to build a new park on the existing ground location – but there has not been no movement on that proposal. There has been significant retrenchment from the Saudi fund on a variety of projects as it refocuses on domestic affairs; the attitude to Newcastle seems entirely in keeping with that change of approach.

Player Sales Saga

The star striker saga was born of that conflict. A more confident leadership could have portrayed his sale as essential to release funds for additional spending; instead there was a vain attempt to keep him. That meant the team began the season amidst a sense of disappointment even with the signings of Woltemade, Yoane Wissa, Jacob Ramsey, Malick Thiaw and Anthony Elanga. The start was indifferent: one win in their first six fixtures.

Yet it appeared a corner was reached. They secured five in six before the weekend, a streak that included demolitions of Union Saint-Gilloise and Benfica in the Champions League. This explains the display against West Ham was such a shock. The problem maybe is that Newcastle’s style is extremely intense, high-energy; a slight drop-off in intensity can have profound consequences. Perhaps the pressure of domestic, Champions League and cup matches, five games in 15 days, had taken its toll. Woltemade started each of those games and appeared particularly fatigued.

The Nature of Modern Soccer

This is the reality of modern football. Coaches must be prepared to make changes. The manager has been unlucky that Wissa’s injury has meant he is lacking forward choices but, no matter how reasonable the explanations, Sunday’s performance was inexcusable –especially following taking the lead at a stadium primed to criticize its own side.

The Newcastle boss will wish it was just a blip, an off-day when all players is off-colour at once, but if the Magpies are to secure the European competition in the future, not to mention eventually launch an actual title challenge, they cannot be as unreliable as this.

Scott Cruz
Scott Cruz

A seasoned sports analyst with over a decade of experience in betting strategies and market trends.

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