Why Middle Eastern Investment Hasn't Transformed Newcastle into Championship Contenders

Eddie Howe is not given to histrionics or sweeping public statements. So by his standards, his media briefing following the weekend's loss to West Ham qualifies as a angry tirade. His side scored first but the opposition were ahead by the interval, while also hitting the post and seeing a spot-kick revoked by VAR, prompting Howe to make a three substitutions at the half-time.

“That was the frustrating thing about the first half,” the coach stated. “Virtually any player could have been substituted and I believe this indicated of where we were at that stage during the match and it’s very, very rare for me to feel that way. In fact, I don’t think I have during my tenure as manager of the club, therefore I believed the team required a significant change at the break. This explains why I made what I did.”

Three key players were substituted at half-time and the team managed to steady to an extent in the second half, without ever really looking like they might fight back into the contest against a side that had won only one of their last nine fixtures. Given how packed the middle of the table currently is, with just three points separating the top spots from mid-table, and a nine-point margin between the upper and lower ranks, a run of twelve points from ten matches has not left the Magpies stranded but, equally, they cannot end the campaign in thirteenth place.

The Problem of Expectations

The problem to an extent is one of perception. In the Saudi Public Investment Fund, the club have the wealthiest owners in the globe. The expectation at the time the PIF bought 80% of the team in recent years was that it would bring a transformative effect, similar to the former Chelsea owner 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 financial fair play rules (while the ongoing charges against Manchester City relate to whether they breached those regulations after they were implemented).

Profit and sustainability restrictions restrict the capacity of owners, however rich, to invest funds on their squads and so in that sense likely might have slowed every Middle Eastern attempt to raise Newcastle to the standard of City. However it wasn't necessary for Newcastle’s expenditure to have been quite as cautious as it has been; they could have spent more and remained within the limit – or simply taken a relatively meagre European penalty since their big issue is primarily with the continental than the Premier League regulation.

Stadium Investment and Financial Regulations

Besides which, infrastructure spending is exempted from Profit and Sustainability calculations; the simplest way to increase revenue to create more financial flexibility would be to expand or renovate the arena. Given the site of the home ground, with listed buildings on multiple sides, practically that likely means constructing an completely new stadium. There was talk in March of potentially making the short move to Leazes Park – opposition from local groups could surely have been surmounted with a commitment to create a new park on the current ground location – but there has been any progress on that plan. There has been significant cutbacks from the PIF on a range of projects as it refocuses on local investments; the attitude to the football club seems completely in keeping with that change of approach.

Player Sales Saga

The star striker saga was born of that conflict. A bolder management could have framed his transfer as necessary to free up capital for additional spending; rather there was a unsuccessful attempt to keep him. That meant the team began the season amid a feeling of frustration despite the acquisitions of several new players. The opening was indifferent: a single victory in their initial six fixtures.

Yet it appeared a corner had been turned. They had won five in six before the weekend, a run that featured demolitions of a Belgian side and a Portuguese club in the Champions League. That’s why the display against West Ham was so surprising. The issue perhaps is that the team's approach is very aggressive, high-energy; a slight drop-off in intensity can have significant consequences. Maybe the pressure of domestic, Champions League and Carabao Cup matches, five fixtures in 15 days, had got to them. Woltemade started all five games and appeared especially fatigued.

The Nature of Modern Soccer

This is the nature of today's the sport. Coaches have to be ready to rotate. Howe has been unfortunate that Wissa’s injury has meant he is lacking forward choices but, no matter how valid the reasons, the weekend's showing was unacceptable –particularly after scoring first at a stadium primed to turn on its home team.

The Newcastle boss will hope it was just a blip, one of those days when everybody is below par at once, but if the Magpies are to secure the European competition in the future, let alone eventually launch an genuine title challenge, they cannot be as inconsistent as they have been.

Stacey Hoover
Stacey Hoover

A seasoned business consultant and tech enthusiast with over a decade of experience in digital transformation and startup advising.