Why Saudi Money Hasn't Transformed The Magpies into Title Challengers

Eddie Howe isn't typically given to dramatics or sweeping media statements. So by his standards, his media briefing after the weekend's 3-1 defeat qualifies as a angry tirade. Newcastle took an early lead but the opposition took the lead by half-time, as well as hitting the post and seeing a spot-kick overturned by VAR, prompting Howe to make a three substitutions at the break.

“The opening period was particularly irritating,” the coach said. “I almost could have taken anyone off and I think this indicated of where we were in that moment in the game 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, so I felt the team required a significant change at the break. This explains why I made those decisions.”

Anthony Gordon, Nick Woltemade and Emil Krafth all came off at half-time and the team managed to steady to an extent in the latter period, without ever really looking like they might fight back into the game against an opponent that had won only one of their previous nine fixtures. Considering how packed the centre of the table currently is, with just three points separating the top spots from mid-table, and nine points between second and 17th, a sequence of twelve points from 10 games has not left the Magpies stranded but, similarly, they must not finish the season in thirteenth place.

The Problem of Perception

The challenge partially is one of public view. In the Saudi Public Investment Fund, Newcastle possess the richest backers in the world. The expectation when the Saudi fund bought a majority stake of the team in recent years was that it would bring a game-changing impact, as Roman Abramovich achieved at Stamford Bridge or Sheikh Mansour had at Manchester City. The distinction is that both of those owners took over before the introduction of FFP regulations (while the current charges against City concern if they violated those regulations after they were in place).

Financial restrictions restrict 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 raise the team to the level of City. But there is no need for Newcastle’s expenditure to have been quite as cautious as it has; they might have invested further and remained within the threshold – or just accepted a relatively meagre European fine given their big issue is more with the continental than the domestic rules.

Stadium Spending and Financial Regulations

Besides which, stadium development is excluded from Profit and Sustainability assessments; the easiest way to raise income to create additional PSR flexibility would be to extend or renovate the stadium. Given the site of the home ground, with listed buildings on multiple sides, in reality that likely implies constructing an entirely new venue. Rumors circulated in March of potentially making the short move to Leazes Park – opposition from community organizations could surely have been overcome with a commitment to build a new park on the current ground location – but there has been any progress on that proposal. There has occurred substantial retrenchment from the Saudi fund on a range of projects as it shifts focus on domestic affairs; the approach to Newcastle seems completely in alignment with that strategic shift.

Player Sales Saga

The Alexander Isak saga was arose from that tension. A bolder management might have framed his transfer as necessary to free up funds for additional spending; rather there was a unsuccessful attempt to retain him. This resulted in Newcastle began the season amidst a sense of frustration despite the acquisitions of Woltemade, Yoane Wissa, Jacob Ramsey, Malick Thiaw and Anthony Elanga. The opening was mixed: a single victory in their initial six fixtures.

Yet it seemed a corner was reached. They secured five victories in six matches prior to Sunday, a streak that included convincing wins of Union Saint-Gilloise and Benfica in the Champions League. That’s why the performance against West Ham was so surprising. The issue perhaps is that the team's style is extremely intense, very high-octane; a minor decrease in energy can have significant effects. Perhaps the pressure of Premier League, European and Carabao Cup competition, five fixtures in 15 days, had got to them. Woltemade started all five matches and appeared particularly weary.

Reality of Modern Soccer

That’s the reality of modern football. Coaches must be ready to make changes. The manager has been unfortunate that Wissa’s injury has left him short of attacking options but, no matter how valid the reasons, the weekend's showing was inexcusable –especially following scoring first at a stadium ready to criticize its own side.

The Newcastle boss will hope it was just a blip, an off-day when everybody is below par at once, but if Newcastle are to secure the Champions League next season, let alone eventually mount an genuine title challenge, they cannot be as unreliable as they have been.

Debra Mcbride
Debra Mcbride

A seasoned financial analyst with over 15 years of experience in corporate accounting and business consulting.