Eddie Howe reveals Newcastle are reluctant to hand Alexander Isak a new contract due to PSR concerns- as the Magpies boss opens up on the ‘complex situation’

Eddie Howe says Newcastle are not in a position financially to give Alexander Isak a new contract, reminding players that rewards only come with performances on the pitch.

Mail Sport revealed on Thursday that talks over a new deal were no longer taking place after preliminary discussions at the end of last season, and that has alerted admirers Arsenal.

The club, led by new sporting director Paul Mitchell, believe that Isak has sufficient time to run on his contract – it expires in 2028 – and he is already among their top earners. The striker’s camp are also said to have reservations over the speed of the project on Tyneside, with Isak harbouring Champions League ambitions.

Howe addressed the subject on Friday and admitted there were no current contract talks.

‘It’s a slightly more complex situation,’ he said, when asked a question comparing Anthony Gordon’s new contract this week. ‘I think with Alex he’s got a long contract anyway and we have to be really careful regarding our spending due to PSR. It’s not a clearcut situation.

Negotiations surrounding an improved deal for the Swede began at the end of last season but have since ceased

Isak netted 21 league goals last season as the Magpies finished outside the European places

‘Every decision we make as a football club has a knock-on effect. For contract renewals, there is a knock-on effect for PSR, and we have to make sure we don’t put ourselves in a position where we can’t act freely in the transfer windows because of what we have done with individual player contracts.

‘We of course love Alex and are desperate for him to stay at Newcastle for many years and score loads of goals for us, but I don’t see a short-term issue with his contract. At this moment in time, Alex just needs to focus on his football. Whether that is him saying, “I’m fine. I’ve got four years left on my contract, I’m happy at the club and I just want to play my best football”. That is the ideal world.

‘But, of course, nothing in football is straightforward, so I’m sure there will be ongoing discussions between Alex, his representatives and the club. Alex can only help his situation by playing well.’

Newcastle’s challenge is convincing players such as Isak they can fulfil their ambition at St James’ Park, and this was put to Howe.

‘My part of that is to create the environment where they enjoy coming in every day, where they feel stimulated in their training and feel like they’re growing in their performances and careers,’ said the head coach.

‘Other stuff around that goes into a different place away from me. One of the challenges we have with all our best players is to continually drive the club forward. It’s very easy to talk about ambition, but we have to show ambition. We have to give them an environment where they feel like they’re flourishing, because the better they perform, the better we have to build the structures around them. I’m very aware of that and I know the club are very aware of that, because what we don’t want to be doing is disbanding our team every year.

‘We need to make sure we’re delivering our part as a football club for them. But also the player has to perform to that level. If he’s saying he has huge ambitions, he has to be actually doing the business on the pitch – it’s a two-way thing, the challenge is always thrown back. As a player you can sit down and say I want to play European football, but you then have to play to that level as well. I certainly want as many players as we can get hitting those levels, because I know if we do, we will be there (Europe) ourselves.’

Isak’s ambitions of playing Champions League football has led to interest from Arsenal

Newcastle finished fourth two seasons ago and played Champions League football last term, but a seventh-placed return in May means they are without continental competition this time around.

Howe added: ‘We have to have a perception of achievement, growing as a football club to keep not just the so-called big names happy, but everyone happy and going in a forward direction.

‘I’ve seen it very quickly go the other way, so I think myself and everyone connected with the club has a big job to try to keep that momentum positive and keep the dreams really big. It’s absolutely crucial that we continue to do that.

‘Now, we have to act on the pitch as well. You can’t just talk about it, you have to deliver on the pitch, and that’s what we’re trying to do.’