As things currently stand, the deal available from Manchester City to sign Kalvin Phillips on loan for the rest of the season is off because it doesn’t bode well for Newcastle United.
That’s the view inside St James’s Park. After weeks of talks, Newcastle’s hierarchy do not think signing Phillips makes financial sense. Not on the terms currently available to them. The loan fee is too high and the talk that there is an obligation to buy during the summer does not sit well with them either.
That doesn’t mean the deal is dead or talks can’t be restarted, but it needs to be revived and City haven’t budgeted yet.
There is some hope that will change as we get closer to the deadline, but it cannot be said with any confidence that Phillips will be a Newcastle player before the window closes.
Newcastle were initially encouraged to believe a deal with City for Phillips would be simple to complete this month. The England international discussed his desire to leave during the international break in November as he is not getting enough game time under Pep Guardiola.
Afterwards, the City manager admitted he was unable to find a place for the 28-year-old in his first team plans. The view was that City would help Phillips find a suitable club to ensure he would play more regularly and Phillips was keen on the idea of a move to Newcastle.
Crucially, however, Phillips did not want to leave and City were able to meet their demands to release him on loan, with a fee quoted at £7 million.
That is a huge sum of money to sign a player for just five months and Newcastle, constrained by Profitability and Sustainability rules, will not pay such a high sum for a loan player.
They also don’t want to commit £40 million of their summer budget if they are obliged to buy, especially as they will already have to pay Chelsea £28 million to turn Lewis Hall’s loan deal into a long-term deal in . June.
He created the conditions for a stoppage and Newcastle are frustrated by the lack of flexibility in City’s position.
After that, City are confident they will find another club willing to pay the money – although they already fear Italian giants Juventus – they want this month.
Newcastle will return to Phillips if the situation changes and will remain “active in the market” if the right player is available, but sources have painted a bleak picture of their recruitment plans.
Meanwhile, Newcastle midfielder Issac Hayden is in talks to join Championship side Preston North End after cutting short a loan move to Belgium’s Standard Liege.
Not signing anyone is risky, but Newcastle refuse to be gouged
Newcastle United are in danger of letting this season end in disappointment and frustration as they remain reluctant to make any new signings this month.
Kalvin Phillips was supposed to be a simple solution for Newcastle to tie up and the England international was expected to make the move from Manchester City early in the window.
With supporters clamoring for new signings to improve a squad that has been plagued by long-term injuries for months, January was thought to be the time for reinforcements to arrive.
The confidence that initially fueled his interest in Phillips, however, has faded.
‘Nothing in the market makes financial sense for Newcastle’
In fact, there is no confidence that Newcastle will sign anyone. As grim as it will be for supporters desperate to see some help arrive, they may fail to add any players, even on loan.
There is nothing on the market at the moment that makes sense for them on a medium to long-term basis and they would prefer to wait until the summer to improve a squad that is looking smart not to finish in the top six again this season.
Newcastle have been crippled by injuries – 11 players were missing against Manchester City last weekend, and their big money signing Sandro Tonali has also been banned until August. Eddie Howe is managing with one hand tied behind his back. It’s been there for weeks.
Howe has nothing on his bench to change games. No midfielder and only 34-year-old winger Matt Ritchie as cover for the attacking players. It has been a recurring story since early December when Newcastle’s slump began.
For 60 minutes, Newcastle are a threat, but as the base starting XI they can no longer hurt teams offensively and are vulnerable defensively. Without fresh legs to revive them in midfield or up top, Newcastle fatigue is being exploited. It is also becoming a self-fulfilling prophecy. Newcastle and their fans have been conditioned to expect pain late in games and so it keeps happening.
Howe’s side have not scored a result-defining goal, winner or equalizer after the 64th minute all season but have conceded in 10 games, in all competitions. Their difference in the first 70 minutes is +13 but after conceding the last two goals to Manchester City, it is -4 in the last 20.
It creates tension. Any manager in Howe’s position would need signings. It’s results alone and Newcastle have lost four Premier League games in a row and won two of their last 10 games in all competitions.
The thought of not signing is a sobering one and begs the question, have Newcastle really written off this season as ineffective? The injuries are too bad, cutting too deep to be successful. They have to take it on the chin.
‘A club can put things right in the summer’
Their recruitment team will be able to straighten things out in the summer when their spending power is greater, boosted by Champions League revenue from this season, as well as the new shirt sponsorship deal with Sela and a lucrative manufacturing partnership with Adidas .
They need to stick to the plan and not panic in January when the market is worth nothing. It is a risky strategy but you can also understand it.
The price they will likely pay is that European qualification may be beyond them this season. Newcastle have dropped to 10th in the table. Howe’s side are just three points behind seventh-placed Manchester United and five behind sixth-placed West Ham.
This season is not over by any means. Newcastle remain within striking distance and their fixture list, on paper, becomes much easier after they travel to Aston Villa at the end of this month.
There is tranquility at the boardroom level. Howe’s job is not under any threat. They believe their position in January is the right one because of their long-term approach. But it is always dangerous to let things bend in football.
‘Howe has the tools to finish the season strongly’
This is the thought process; injured players will begin to return at the start of February and as their injury problems subside, Howe will have the tools to finish the campaign strongly.
They are also in the quarter-finals of the FA Cup, where they face Fulham at Craven Cottage in two weeks’ time.
But players such as Joe Willock, who has barely played since May, and Harvey Barnes, who has been injured since September, will need time to improve. They can easily have further problems after being injured with complex tendon and foot issues.
And what if Newcastle pick up more injuries in the meantime? Playmaker Bruno Guimaraes struggled with a tight hamstring against City and is just one more yellow card from a two-match suspension.
At the moment, Newcastle would have to play a defender, either Fabian Schar or Lewis Hall, in midfield if they lose another player in that area of the pitch.
Striker Callum Wilson is set to return from his latest niggle in time for the Villa game but remains broken down and will be 32 next month.
Newcastle should really bring someone in this month and they are still searching the market for someone suitable. Actually they are harder to find. The market is slow, they can only hope that things will be released late in the window. But most of their Premier League rivals expect the same.