Why Middle Eastern Investment Hasn't Turned Newcastle into Title Challengers

The Newcastle manager isn't typically prone to dramatics or sweeping public statements. So by his standards, his press conference following the weekend's 3-1 defeat qualifies as a angry outburst. Newcastle took an early lead but the opposition took the lead by half-time, while also hitting the post and having a penalty overturned by VAR, leading Howe to execute 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 that was a reflection of our performance level in that moment during the match and it’s very, very rare for me to have that impression. In fact, I don’t think I have during my tenure as head coach of Newcastle, therefore I believed the team required some shaking up at the break. That’s why I did what I did.”

Three key players all came off at the interval and the team managed to steady somewhat in the second half, without ever really looking like they could get back into the contest against an opponent that had secured just a single victory of their previous nine fixtures. Given the congestion the middle of the table is, with just three points dividing the top spots from mid-table, and a nine-point margin between second and 17th, a run of twelve points from ten matches has not placed Newcastle stranded but, equally, they cannot finish the season in 13th.

The Problem of Expectations

The problem partially is one of perception. In the Saudi Public Investment Fund, Newcastle have the richest owners 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 transformative effect, as the former Chelsea owner achieved at Stamford Bridge or Sheikh Mansour had at Manchester City. The distinction is that both of those investors took over before the advent of financial fair play regulations (while the ongoing allegations against City concern whether they breached those regulations once they were in place).

Financial restrictions limit the ability of proprietors, however rich, to invest funds on their teams and so in that sense likely would have slowed every Saudi attempt to elevate Newcastle to the level of Manchester City. However there is no need for the club's spending 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 European fine given their big issue is primarily with the continental than the domestic regulation.

Infrastructure Investment and PSR Regulations

Additionally, infrastructure spending is exempted from PSR calculations; the easiest method to increase revenue to create additional financial flexibility would be to extend or redevelop the stadium. Considering the location of the home ground, with listed buildings on multiple sides, practically that likely means constructing an entirely new venue. Rumors circulated in March of potentially undertaking the short move to Leazes Park – opposition from community organizations could surely have been overcome with a promise to build a replacement green space on the existing ground location – but there has been no movement on that plan. There has occurred significant cutbacks from the Saudi fund on a range of projects as it refocuses on domestic affairs; the attitude to the football club seems entirely in keeping with that change of approach.

Player Sales Saga

The star striker episode was arose from that conflict. A more confident management might have portrayed his transfer as necessary to free up funds for additional spending; instead there was a vain attempt to retain him. That meant the team began the season amidst a feeling of disappointment even with the signings of Woltemade, Yoane Wissa, Jacob Ramsey, Malick Thiaw and Anthony Elanga. The start was indifferent: a single victory in their initial six fixtures.

But it seemed a corner had been turned. They secured five victories in six matches before the weekend, a run that included convincing wins of a Belgian side and a Portuguese club in the Champions League. This explains the performance against the Hammers was such a shock. The issue perhaps is that the team's style is very aggressive, high-energy; a slight drop-off in intensity can have profound consequences. Maybe the pressure of domestic, Champions League and Carabao Cup matches, five fixtures in a fortnight, had got to them. The German forward featured in each of those games and appeared particularly weary.

Reality of Contemporary Soccer

That’s the nature of today's the sport. Coaches must be ready to rotate. Howe has been unfortunate that the forward's injury has left him short of attacking options but, regardless of how reasonable the explanations, Sunday’s showing was unacceptable –particularly after taking the lead at a stadium primed to turn on its own side.

The Newcastle boss will wish it was just a blip, an off-day when everybody is off-colour simultaneously, but if the Magpies are to qualify for the European competition in the future, not to mention one day launch an genuine championship bid, they cannot be as inconsistent as this.