The group bidding to take control of Newcastle United are seeking to lower the asking price in light of the huge uncertainty in football because of coronavirus.

The Times understands that Newcastle officials have sent paperwork to the Premier League outlining the proposed takeover of the club by the Public Investment Fund (PIF) of Saudi Arabia, a move that is seen as significant.

Negotiations about finally ending Mike Ashley’s 13 years in charge at St James’ Park began before the emergence of the Covid-19 virus that has ground the Premier League to a complete halt.

That has sparked conversations about a ‘reduced price’ in order to facilitate the sale. Ashley has varied the asking price for the north east club in recent years between £300 to £400 million.

The initial price that was put forward by PIF was believed to be in the region of £340 million. The figure offered now is thought to have dropped from there, to nearer £300 million.

A deal has still to be agreed and there are various stages for the process to go through, but the Premier League receiving details of the proposed bid from Newcastle is the clearest sign yet of Ashley’s renewed intention to sell.

It is unknown how hard his Frasers Group and his flagship Sports Direct stores have been hit by the lockdown. Ashley caused a national outrage by attempting to keep his stores open during the UK lockdown, when he claimed they were essential operators because they sold exercise bikes. He apologised for that move on Friday.
Staveley failed in her attempted takeover of Newcastle at the start of 2018
Staveley failed in her attempted takeover of Newcastle at the start of 2018
JOHN WALTON/PA

The PIF bid to take over Newcastle is believed to centre around the sovereign wealth fund taking an 80 per cent stake in the club, with Amanda Staveley and Reuben Brothers possibly taking the other 20 per cent.

Staveley was unavailable for comment on Monday. Newcastle also issued ‘no comment’ when approached by The Times to comment on the latest developments in the potential takeover.

Staveley failed in her attempted takeover of Newcastle with PCP Capital at the start of 2018, and drew the ire of Ashley, who released a statement criticising the negotiations. It is thought that Ashley is presently out of the country after last week’s controversy.

In 2018, Staveley was unable to provide the funding for a takeover of the Premier League club. The same situation happened with the attempted takeover by the former Chelsea chief executive Peter Kenyon. Those failed talks are believed to have cost Newcastle £1 million in legal fees, a major factor in their continued cautious approach to any potential change of ownership.