"We were doing well, but maybe this was our problem that maybe we were doing so well that everybody was expecting that we could be at the top of the table, more or less", Benitez said.
Newcastle head to West Ham United on Saturday having lost eight out of their last nine matches.
Reports suggested that the strugglers had managed to secure the services of the youngster on a loan deal, with the finishing touches to the deal to be provided once the window opens in January. The teams have done business before with the sale of Christian Atsu which was a loan deal initially.
"We've seen the consequences of not doing business the way we wanted in August, so it's obvious when we talk about January how important it is for the city, for every fan and for everyone at the club that we stay in the Premier League".
"But to do that, we have to stay in the league first".
The ongoing takeover talks between Ashley and Amanda Staveley have led to the uncertainty over transfer funds, and Benitez added: 'I don't know the budget that I have, so we don't know how much we can spend. "We know it is hard because the situation is not good but the team, the club and the staff are all together and we will fight for the three points".
There are now serious concerns that Benitez's side could be relegated, unless they get their recruitment right in January.
David Moyes has started to turn things around by guiding the Hammers out of the relegation zone, but Benitez warned that panic moves don't work in the long-run.
"You have to do business early and get players as soon as possible", said Benitez.
"Or how much we have".
"It's not that you're not winning and they're winning everything, it's not true".
Doesn't improve the squad one bit no better than what we have already!
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