Newcastle United is not worth a penny - never mind £100m.
That's the view of sources close to the negotiations as Mike Ashley tries to sell the struggling football club.
Several consortiums are interested in buying Newcastle. They have been carrying out due diligence and delving into the background of the club's financial liabilities.
However, the two main players are a Malaysian group and a team of Irish investors. They have been given a tour of St James Park and the clubs training headquarters. But there is a big stumbling block with the price Ashley wants.
Someone close to the negotiations told me: "There is no way Ashley will get £100m. It's not worth a penny. He'll end up having to give it away."
Why?
Newcastle United is debt free. I'm told Ashley's foray into football has cost him £150m. But my source reckons the club is on track to lose £57m this year.
"The Malaysians are still the front runners. But why would anyone want to pay money for a club which is projected to lose more than £50m in its first year of trading?" added the source.
He said he couldn't see any deal being done before the new football season started.
Ashley has been trying to sell Newcastle United since June. The Sports Direct founder is using Keith Harris, chairman of London-based investment bankers Seymour Pierce, for the sale.
He wants £100m for a football club steeped in history and with passionate fans. But this is a club in decline with a huge wage bill and a make-shift manager.
Sky News
