What’s Gone Wrong For Newcastle United?

When Saudi Arabai’s Public Investment Fund (PIF) invested in Newcastle United nearly five years ago, it seemed certain the St James’ Park club was on a route to the top of English and European soccer. It was apparently inevitable that Newcastle would become the next Manchester City or Paris Saint-Germain.

Instead, Eddie Howe’s team is slumped in 14th place in the Premier League table this season, a long way from the upper echelons many predicted they would have reached by now. Howe is under pressure to prove he’s still the right man for the job, but Newcastle has even more to consider than just the future of its manager.

Chairman Yasir Al-Rumayyan and a delegation from PIF is visiting the North East this week for meetings that could determine the future direction of Newcastle United. This comes after a withdrawal of funds from LIV Golf and a resetting of several investment focuses that could hit Newcastle hard. PIF isn’t going to be spending as much on sport in the years to come.

Progress has been slow for Newcastle. While the club qualified for the Champions League quicker than anyone expected when PIF arrived in October 2021, making the steps required to challenge for soccer’s biggest prizes haven’t happened. Instead, Newcastle has regressed badly this season, falling down the league table.

The Premier League’s Profit and Sustainability Rules (PSR) haven’t helped. This limits what clubs like Newcastle United can spend in the transfer market, linking outlay to income. This explains why the club is so focused on either expanding St James’ Park or building a new, larger stadium. Newcastle must find a way to grow revenue as quickly as possible.

Howe has cut a calm and composed figure in recent weeks, even as Newcastle’s league form has plummeted. The 48-year-old is relaxed about PIF’s visit. “It’s something that happens regularly so it's nothing out of the norm for us,” he said. "I always like the chance to talk directly to the owners and to express things from my perspective. It's something we have always done and I look forward to that next week.”

Whatever the outcome of the meetings between Newcastle United’s decision-makers and PIF, the St James’ Park club clearly finds itself at a crossroads. If the Magpies are to become a force to be reckoned with in English and European soccer, this period between now and the start of the summer will be key.

This article was originally published on Forbes.com