What has Transformed Since the Newcastle Takeover?
Eddie Howe's voice trailed off.
"I remember strolling through the practice facility when we came up that first time," remarked the Newcastle United head coach recently. "It was…"
Howe was not becoming sentimental, but considering the work needed to improve the club's dated Benton base following his appointment almost four years back.
Newcastle had not long been acquired by a investment group from Saudi Arabia in a multi-million pound transaction.
The club had been dubbed the wealthiest in the world by observers, but the reality on the ground was rather different as they fought relegation.
In a proposal to improve the facility a few months later, it was even stated the training facility fell "well under the Premier League and perhaps even Championship standards".
The base has since been updated with recovery and plunge pools, a new canteen, a athletes' relaxation space and expanded locker rooms, among other amenities, but it is the team that has been truly transformed since then.
So what has changed since the takeover and why didn't the wealth of Newcastle's owners automatically mean more achievements and honours?
Further Improvements Required but Things Will Change
Matt Ritchie sensed it.
He knew what could happen if Howe "took charge" and "possessed attacking talent", after having collaborated with the manager at Bournemouth.
"When I first arrived, I would discuss Eddie Howe and Bournemouth," said the veteran attacker, who represented Newcastle between 2016 and 2024.
"The lads would say, 'come on, drop it, he can't have been that good'. But I'd explain there was no stone left unturned."
"I felt delighted that they experienced it. Without firsthand exposure, you don't truly believe you have never worked like that before. It's the meticulous planning, the planning and the desire to improve - all the elements that make Newcastle what they are now."
It has not all been plain sailing, of course, since Howe's appointment or the takeover a few weeks prior.
Newcastle, currently mid-table in the top division, failed to secure a number of targets during a draining summer window and lost striker Alexander Isak to Liverpool for a record-breaking £125m.
The club do not have a technical director after Paul Mitchell left in June, following less than a year in the post.
And the wait continues for updates concerning the future of St James' Park and building of a new state-of-the-art training ground.
But this is a side that ended a 70-year drought to claim a significant cup back in March after lifting the Carabao Cup by defeating Liverpool.
They have secured entry to the Champions League in multiple recent campaigns - achieving their largest victory in the competition against Union Saint-Gilloise this week - and only Manchester City, Liverpool and Arsenal have picked up more points in the Premier League since Howe assumed control.
"A lot has changed just in terms of the general feeling of the club," added Howe. "Naturally, the team has changed. Inevitably, teams progress and change over time."
"Our operational methods behind the scenes as a football club is completely transformed but, also, if you look around the training ground here, there have been big improvements. That's what the club required and continues to need."
"We need more, but things will change and gradually evolve over time. It's exciting times for the football club."
Attempting to Close Significant Income Disparity
Newcastle have expanded significantly off the field.
Revenue is projected to rise from £140m in 2021 to upward of £400m when the club's most recent financial reports are released later this season, while staff numbers have more than doubled to 550 in the past few seasons.
There has been significant funding in the academy and the female squad, while substantial sums have been pumped into the club to help with day-to-day running costs.
But one query observers may pose is why the financial resources of their Saudi owners hasn't yielded more achievements.
Though fresh acquisitions have joined - around £100m after deductions was spent in the summer - this has been a relatively gradual build.
"Because the new ownership were extremely rich, on paper, a lot of people made an assumption that they were going to purchase success," stated a Newcastle fan analyst.
"Yes, Newcastle have recruited some excellent internationals like Bruno Guimaraes and Sandro Tonali, but the development of current team members and the acquisition of players like Dan Burn from the region to strengthen that connection around the club has been massive and really important."
Such an strategy has been affected by Profit and Sustainability Rules (PSR), which restrict losses to £105m over a three-year cycle, so finding a way to create additional flexibility will be crucial for Newcastle.
For context, Manchester United may have experienced their poorest season in more than four decades last season, but the club still produced historic income of £666.5m.
Digging deeper, Manchester United brought in £333.3m worth of sponsorship revenue and £160.3m in gate receipts.
Newcastle, by contrast, raised £83.6m and £50.1m respectively in their most recent published accounts from 2023-24.
Acquisition 'Increased' Competitors' Worries
Manchester United have not necessarily optimized their huge income streams, of course.
But, historically, the sides who invest higher amounts on wages accumulate the most points per game in the Premier League.
Previous disruptors like Manchester City and Chelsea were able to dominate competitors with better financial offers before the current rules were introduced in 2013.
But Newcastle 'only' had the eighth largest salary bill in the Premier League just a few years back and the club came mightily close to a PSR breach in June 2024 following years of imbalanced trading.
"I'm not necessarily sure these are unforeseen results of the rules," said a football finance expert. "The cynical perspective of the Premier League is that the clubs at the top didn't want another City or Chelsea to arise. This is a way of establishing a glass ceiling."
Newcastle are going to have to do things a somewhat uniquely - and that has been evident since the takeover.
In fact, an unnamed executive previously approached the Premier League on behalf of his club and 10 others amid apprehension Newcastle could secure lucrative sponsorship deals with Saudi Arabian companies.
He asked that notice was given of a vote to implement a short-term ban on related-party transactions just five days after the buy-out in 2021.
This senior figure openly admitted the Newcastle takeover "heightened" worries and "encouraged the clubs to seek action" when he was later cross-examined by Manchester City's legal team.
Nobody Should Justify Saudi Human Rights Record
The associated party transaction rules have been updated and continue to apply.
But Newcastle's new CEO, David Hopkinson, has aimed to find ways to realize the club's "under-realised commercial potential".
That has been expected to close friend Tom Pistore, who worked with the Canadian at Maple Leaf Sports & Entertainment.
"Our group under his leadership were always attempting to concentrate on how do we continue to evolve?" he said. "Maintaining current state keeps you stationary so it was about remaining innovative in business and partnership relationships, innovation, digital and ticketing."
"As the landscape changed, David was always very forward facing with a inquisitive nature in new concepts. Leading edge, but not bleeding edge were terms we often talked about in observing early adopters at something and then having a proper evaluation."
Hopkinson, who previously served as president and chief operating officer at Madison Square Garden Sports and head of global partnerships at Real Madrid, wants to position Newcastle "with global top clubs".
That remains the future goal of chairman Yasir Al-Rumayyan, the governor of the Saudi Arabian Public Investment Fund (PIF) - who hold controlling interest in the club - as well as co-investor Jamie Reuben.
But a human rights campaigner said "goals and glory are distracting from executions and repression" after a record 345 people were executed in Saudi Arabia last year.
"This extended beyond football," he added. "It's about leveraging the worldwide reputation of the Premier League to sanitise a problematic rights situation."
A political representative was the first to admit she "would not select Saudi Arabia as the owners of the club".
However, she stressed supporters were the "final individuals who get to choose".
"With financial prioritization, which the Premier League have, those with the greatest wealth will end up winning the prestigious teams like Newcastle United," she said.
"But no-one should be expected to defend, stand up for, or excuse Saudi Arabia's human rights record."
