Howe going as spending rules bite - troubles for Newcastle's Saudi owners

What the report says

BBC Sport reports that Eddie Howe’s departure from Newcastle United on Thursday has sharpened questions about the direction of the club under its Saudi Arabia-backed ownership. Howe, appointed after the Public Investment Fund takeover in November 2021, leaves after Newcastle finished 12th in the Premier League, with BBC saying former RB Salzburg manager Matthias Jaissle is expected to replace him.

According to the BBC, Newcastle’s leadership had spoken only months ago about putting the club in contention to be among the world’s best by 2030, but recent results and squad changes have made that target appear distant. The report points to a difficult season that included early exits or disappointments in multiple competitions, despite Howe having delivered last year’s Carabao Cup, ending a 70-year wait for a domestic trophy.

The BBC frames the managerial change against the impact of football spending controls. Newcastle have sold or reportedly moved on several leading players, including Alexander Isak, Anthony Gordon and Sandro Tonali, while Bruno Guimaraes has been linked with a departure. The club’s transfer activity has also been constrained by the need to raise revenue before spending, with Profit and Sustainability Rules and the newer Squad Cost Ratio limiting what wealthy owners can inject directly.

BBC Sport says Howe informed Newcastle around two weeks ago that he wanted to leave, with the club initially asking him to reconsider before accepting his decision. The report says concerns over transfer strategy formed part of the backdrop, though it was not described as the sole reason for the split. Newcastle’s revenues have grown since the takeover, and the club has plans to improve training and stadium income, but the immediate challenge is rebuilding while staying within financial rules.