Newcastle's Saudi project in tatters as Howe plans to resign amid PSR fire sale

Newcastle United's ambitious Saudi-backed project is unraveling. Manager Eddie Howe is set to leave his position, according to multiple reports, throwing the club into chaos just days before the Premier League season begins. The decision follows a humiliating 4-1 friendly defeat to Bristol City, but the roots run deeper - a fractured relationship with the Saudi Public Investment Fund (PIF) owners and mounting pressure to comply with profit and sustainability rules. Sources indicate Howe intends to take a break from coaching, but the tension has been building for over a year. He was informed the club must sell key assets this summer to stay within PSR and the new squad-cost ratio (SCR) regulations. That led to the departures of two of Newcastle's best players: Anthony Gordon and Sandro Tonali were sold to Barcelona and Tottenham respectively, bringing in €188 million. So far, the club has reinvested €95 million, signing Bazoumana Toure from Hoffenheim for €50 million, Sean Steur from Ajax for €23.5 million, and Ewen Jaouen from Reims for €21.5 million. Now another star, Bruno Guimaraes, is pushing hard for a move to Arsenal, leaving the Magpies at risk of losing their midfield anchor. The situation is a far cry from the vision laid out by CEO David Hopkinson, who in February told TalkSPORT: "We have a high ambition here... it's a five-year plan that takes us through 2030... The club and owners want to win the league by 2030." Last summer's massive €240 million spending spree on Anthony Elanga, Jacob Ramsey, Nick Woltemade, and Yoane Wissa has delivered disastrous returns. Only centre-back Malick Thiaw has proven a success. Revenue has climbed from €163 million in 2021 to €460 million in 2025, but that still lags far behind Manchester City's €809 million. City face 115 Premier League charges over financial fair play breaches, and the stricter rules on related-party sponsorships have prevented Newcastle from tapping into the PIF's vast wealth. Football finance expert Kieran Maguire noted: "Manchester City were able to get there earlier when there was no such thing as associated party transactions... It's that much harder now." With Howe's imminent exit and uncertainty at boardroom level, the dream of lifting the Premier League trophy by 2030 looks increasingly distant.