Sources: Eddie Howe ‘devastated’ as Newcastle main transfer collapses
Joao Pedro Snubs Newcastle United for Chelsea Move, Leaving Eddie Howe Frustrated
Joao Pedro’s decision to snub Newcastle United in favour of a big-money move to Chelsea has left manager Eddie Howe in a difficult and increasingly frustrating position, according to sources close to the situation, as reported by Football Insider.
On the latest episode of The Inside Track podcast, senior correspondent Pete O’Rourke provided insight into the fallout at St. James’ Park following Pedro’s shock move. The Brazilian forward, who was officially unveiled as a Chelsea player on Wednesday after completing a £60 million switch, had previously been high on Newcastle’s list of top transfer targets this summer.
The Magpies had been confident of sealing a deal for the 23-year-old and were believed to be leading the race for his signature until Chelsea entered the picture late and outmuscled them financially and in terms of project appeal. Pedro’s arrival at Stamford Bridge adds to the growing number of former Brighton talents now plying their trade in West London, including Moises Caicedo and Marc Cucurella.
Newcastle had earmarked Pedro as a cornerstone of their summer rebuild, with plans to bring in three marquee signings totalling around £175 million. His rejection now represents yet another high-profile setback in the transfer window for the Tyneside club, where frustrations are beginning to mount rapidly.
Financial Constraints Frustrating Newcastle’s Ambitions
Former England international Paul Robinson didn’t hold back in his criticism of the financial landscape currently shaping Premier League transfers. He described the Profit and Sustainability Regulations (PSR) and Financial Fair Play (FFP) frameworks as “insane”, arguing that these limitations have had a disproportionate impact on clubs like Newcastle who, despite having considerable financial backing, are unable to fully utilise it due to regulatory constraints.
Indeed, sources suggest that Pedro’s decision has hit Howe and his recruitment team hard, particularly because of how much effort had been invested in trying to lure the Brazilian to the North East. The rejection has not only left Newcastle scrambling for alternatives but also raised broader questions about their ability to compete at the highest level under current spending rules.
Despite the club’s financial muscle following the Saudi Public Investment Fund’s (PIF) takeover, Newcastle are discovering that their status as the “world’s richest club” comes with a downside. Rival clubs are reportedly inflating their asking prices for players when Newcastle show interest, something insiders refer to as the “Newcastle tax”.
Howe ‘Devastated’ Over Losing Pedro
O’Rourke revealed during the podcast that Eddie Howe is personally “devastated” by the failure to land Pedro. “When Newcastle approach players or clubs, the price automatically inflates because of the assumption that they have deep pockets,” he explained. “That’s something Howe finds incredibly frustrating, and it’s proving to be a major stumbling block in getting deals over the line.”
Despite qualifying for the Champions League recently—a significant achievement for the club—Newcastle are finding it increasingly difficult to attract top-tier talent in the face of inflated fees, wage demands, and more established competitors. Their ability to hold onto key stars like Bruno Guimaraes, Sandro Tonali, and Alexander Isak is a positive, but that stability hasn’t translated into transfer market success.
Time for Newcastle to Rethink Their Transfer Strategy
Pedro is not the first top target to reject Newcastle this summer, and unless something changes, he is unlikely to be the last. Brentford winger Bryan Mbeumo has already indicated a preference for a move to Manchester United, despite the Red Devils’ absence from European competitions next season—a clear indication that name recognition and legacy still play a major role in transfer decisions.
With time ticking on the summer window, Eddie Howe is now shifting his focus towards West Ham star Mohammed Kudus. The versatile Ghanaian attacker is widely expected to move on from the London club during this window, and Newcastle are among the sides hoping to secure his signature.
Should they succeed, Kudus could represent a turning point—a morale-boosting signing capable of reigniting Newcastle’s ambitions and altering the negative narrative that has so far defined their summer.
In the meantime, the pressure is growing on the club’s hierarchy to find creative solutions in the transfer market and on Eddie Howe to remain patient in a window that, so far, has delivered more setbacks than successes.