Newcastle owner Mike Ashley has been warned that aiming low next season could cause greater financial damage to the club.
The Magpies last night released a lengthy statement making it clear to supporters that there would be no new investment in the squad this summer.
The club have made an estimated 70million operating loss for the last two financial years and having embarked upon a five-year mission to reach the break-even point.
Boss Chris Hughton will therefore have a threadbare transfer budget with which to operate and see his side avoid relegation in the Premier League.
But Mark Jensen, editor of fanzine The Mag and a prominent member of the Newcastle United Supporters' Trust, fears a lack of ambition could prove fatal.
He said: "My take on it, regardless of this statement, is Newcastle United should be aiming for every place in the Premier League from ninth downwards because I don't think there's a great amount of difference between those clubs from probably fourth-bottom upwards.
"I don't expect to finish ninth but I think you should be aiming for that and if you end up just staying up, I wouldn't be crying into my beer then.
"But if you are aiming to be fourth-bottom, it doesn't leave you any margin for error.
"They are talking about breaking even in five years' time, but presumably that is dependent on still being in the Premier League.
"If the club is relegated, surely all that goes out of the window?"
Promotion is worth an estimated 60million to the Magpies but they are determined to make ends meet.
But Jensen is concerned that it could be a long, hard season if the squad is not improved.
He said: "It's disappointing, to say the least.
"We have always said the club does need to have a long-term plan. They have now come up with a long-term plan, but it doesn't really seem to reflect what I would think would take Newcastle forward in the next five years.
"We don't expect to be going for Fernando Torres and Steven Gerrard.
"But between those Galacticos and players who aren't good enough for the Premier League, there are an awful lot of players who realistically I would hope Newcastle would be able to go out and at least match their wages.
"You have got to pay the going rate — that goes for transfer fees and wages.
"It's not a case of just spending money on anybody, but it's clear to me that the club needs a minimum of four players who would be able to go straight into the first team just to take the club forward and make sure we are not in a relegation battle."
