It's very early days - too early to be going off half-cocked - with a big test of their credentials to come in Bathurst today against defending premiers Penrith.
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But right now, the Knights sit on top of the NRL ladder after two strong wins despite being more than $700,000 under the salary cap.
Newcastle's roster suddenly appears more formidable than most people predicted with the prospect of even better times ahead given the strong financial position.
Potentially, a big chunk of this season's unspent salary cap could be saved to bolster the club's roster further next season. The club is currently pursuing two of England's best young talents, Will Pryce and Kai Pearce-Paul.
There is no doubt confidence surrounding the Knights has been boosted by the early form of unheralded halves pairing Jake Clifford and Adam Clune, who together are earning less than what most clubs are forking out for just their halfbacks.
They were meant to be the club's Achilles heel after the loss of Mitchell Pearce and the Tigers' decision to block Luke Brooks' release.
Recruitment boss Clint Zammit copped plenty of heat when he signed Clifford from the Cowboys last season and there were puzzled looks around when he brought Clune to the club from the Dragons. But Clifford is quickly becoming a class act who is set to be offered an extended deal beyond 2023 while Clune has already exceeded expectations.
Zammit has also unearthed a real gem in prop Leo Thompson while those who claimed Dane Gagai's best days were behind him have been eating their words over the past few weeks.
The Knights have two top 30 spots left to fill and another development deal up their sleeve. Anthony Milford will fill one spot if he is cleared of an assault charge early next month and should that happen, would instantly provide back up in the halves and at fullback if needed.
The key for the Knights remains the health of stars such as Kalyn Ponga, Daniel and Jacob Saifiti and centres Gagai and Bradman Best, along with the halves. But with some depth underneath, the signs are encouraging.
Another strong performance in Bathurst today will only emphasize that.
Klemmer dilemma
The news David Klemmer was forced to undergo knee surgery on Tuesday, sidelining him for at least three weeks, raised a few eye-brows.
It begged the question, why did it take the club more than a week to figure out Klemmer needed an arthroscope on his damaged knee when he suffered the injury against the Roosters in the opening round?
The initial thought was that his injury must have been misdiagnosed. Not so. Rather, we're told the in-form prop suffered a bad cork and because of severe bleeding, initial scans failed to identify the damage.
It wasn't until after he rang coach Adam O'Brien at 9.30 am on game day to confirm he was out of the Tigers clash that further scans revealed the problem and the need for a clean-up.
Crokes rewarded
Mat Croker's eye-catching performance off the bench for the Knights against the Tigers came only after the club was granted an injury exemption from the NRL for him to play following Klemmer's withdrawal.
Croker is on a second tier contract and not part of the club's top 30 roster or on a development deal.
Normally, he wouldn't have been ineligible to play but the rules have been relaxed by the NRL this season because of COVID. With Klemmer out and Daniel Saifiti, Jesse Sue and Brodie Jones all sidelined, Croker got his chance.
He'll be on the bench again against the Panthers today and coach O'Brien is making no secret of his desire to sign the forward longer-term.
COVID strikes
You've got to feel for backrower Brodie Jones. He got through the entire four months of pre-season training as the only Knights player not to contract COVID, only to be laid low by the virus the week he was due to return from injury.
A large Knights contingent headed by captain Kalyn Ponga and prop Daniel Saifiti made the trip to Wyong on Monday night to see Edrick Lee play his first game in 16 months.
Edrick's return a real club event
It was a huge show of support for the popular lanky winger, whose last game was for Queensland in Origin III in November 2020. Most of the club's coaching and support staff, minus Adam O'Brien [prior commitment], were also there.
After playing 40 mins in the NSW Cup game against Wests, Lee will likely travel to Bathurst today in the extended first grade squad before playing against the Panthers in NSW Cup tomorrow.
Baz's Best
New recruit Dane Gagai and playmaker Jake Clifford have been the stars of the Newcastle Knights' unbeaten start to the season as the club prepares for a real acid test against defending premiers Penrith in Bathurst today.
Gagai and Clifford have polled Baz's Best points in both their side's opening two wins over the Sydney Roosters and Wests Tigers.
Round 1: Knights v Roosters
3. Dane Gagai 2. Jake Clifford 1. Mitch Barnett
Round 2: Knights v Tigers
3. Tyson Frizell 2. Jake Clifford 1. Dane Gagai
Progress points: Dane Gagai, Jake Clifford 4, Tyson Frizell 3, Mitch Barnett 1.