Sources: Eddie Howe ‘devastated’ as Newcastle transfer collapses

Eddie Howe has been left deeply disappointed after Joao Pedro turned down the chance to join Newcastle United in favor of a move to Chelsea.

According to sources close to the situation, the Newcastle boss had placed the Brazilian attacker high on his summer wishlist, but now finds himself dealing with yet another setback in a window that is proving more frustrating than fruitful.

Pedro’s £60 million switch to Stamford Bridge was confirmed on Wednesday, marking another addition to the growing group of former Brighton players now plying their trade in West London.

For Newcastle, however, it was a stinging blow. The club had earmarked Pedro as a key component of their ambitious summer plans, hoping he would be one of three marquee arrivals totalling around £175 million. His snub is just the latest in a string of disappointments that have dampened spirits on Tyneside.

Those within the club have described Howe’s reaction as one of deep frustration. The manager had set his sights on Pedro not only for his technical ability and Premier League experience but also because of how well he fits into Newcastle’s evolving tactical system.

Missing out on such a key target has reportedly left him ‘devastated,’ a sentiment that reflects growing tensions between the club’s ambitions and the realities of the transfer market.

One major obstacle continues to hamper Newcastle’s efforts: the club’s financial profile. While the Saudi-backed ownership makes them one of the wealthiest clubs in the world on paper, the constraints imposed by Profit and Sustainability Rules (PSR) and Financial Fair Play (FFP) have significantly limited what they can spend without triggering penalties.

Former England goalkeeper Paul Robinson recently called the situation “insane,” pointing out how these regulations have handcuffed clubs like Newcastle despite their potential.

Adding to the difficulty is what insiders now refer to as the “Newcastle tax.” Since the Public Investment Fund takeover, other clubs have started to inflate asking prices whenever Newcastle show interest in a player.

Agents and selling clubs see the Magpies’ financial strength and automatically raise demands, believing they can extract more money from a side perceived to have deep pockets.

This tactic has made even straightforward negotiations unnecessarily complicated and, in Pedro’s case, unworkable.

Howe is said to be increasingly frustrated by this dynamic. He had identified Pedro early as a priority signing, viewing the Brazilian as someone who could provide creative spark, versatility, and scoring threat from deeper positions.

Missing out on him after extensive groundwork has only amplified the pressure on the club’s recruitment team to deliver alternatives quickly.

Unfortunately, Pedro is not the first to choose another club over Newcastle this summer. Brentford’s Bryan Mbeumo made it clear he prefers a move to Manchester United, even though they failed to secure European qualification.

These repeated rejections have triggered an urgent reassessment within Newcastle’s hierarchy about how the club is perceived and how they approach transfer dealings going forward.

Newcastle must now shift focus toward new targets, and West Ham’s Mohammed Kudus has emerged as one of the most promising alternatives. The Ghanaian international looks increasingly likely to leave the Hammers this summer, and there is hope that he could be persuaded to join the project on Tyneside.

Kudus possesses the flair, versatility, and attacking instinct that Howe desires, and landing his signature could serve as a major statement that turns the club’s transfer momentum in a more positive direction.

Despite the early setbacks, there’s still time for Newcastle to make this window a success. But they must act with clarity and conviction.

If they want to secure the calibre of players that can elevate them into consistent Champions League contention, they need not only the right strategy but also the right messaging — players must believe in the project, just as much as the club believes in them.

For Eddie Howe and Newcastle United, the real challenge now is to rewrite the narrative and ensure this transfer window becomes a springboard, not a stumbling block.