In the wake of a 2-0 home defeat by Chelsea, the Tyneside idol was honest enough to admit the club he had very nearly guided to the title in 1996 were no longer genuine contenders saying "We are a million miles away from that.
"What I can say to the Newcastle fans is that we will be trying to get fifth and we will be trying to win the other league that's going on within the Premier League."
Keegan's frank assessment of the situation earned him a carpeting from Mike Ashley, and the Toon owner wanted him out.
That chasm increased in distance to several million miles when the Magpies' 16-year stay in the top flight ended with relegation to the Coca-Cola Championship.
The rate of acceleration under Ashley's chaotic two-year reign has been nothing short of spectacular.
He allowed the manager he had inherited, Sam Allardyce, to spend a total of around £18million on Joey Barton, Spanish full-back Jose Enrique and Manchester United utility man Alan Smith, men from whom they have enjoyed little value for money and in Barton's case, more trouble than he is worth.
Allardyce lasted only eight months and having suffered the embarrassment of being rejected by Harry Redknapp they pulled off what looked like a masterstroke by persuading Keegan to come out of retirement and reprise his role as bona fide Tyneside legend.
But the club effectively ensured the dream would end in tears the moment they handed Dennis Wise and his recruitment team the responsibility for buying and selling players.
With almost child-like simplicity, they decided the way forward was "Wow!" singings; instead, they delivered "Who?" signings as the likes Jonas Gutierrez, Fabricio Coloccini, Xisco and Ignacio Gonzalez arrived with little or no input from Keegan, who promptly walked out in disgust.
Wise would soon follow, but not before the damage had been done, with caretaker Chris Hughton in two spells either side of Joe Kinnear's eventful reign, and finally even Geordie hero Alan Shearer unable to prevent the impending train wreck.
Perhaps, just perhaps, Keegan knew what he was talking about all along.