Sources close to the potential Newcastle takeover deal have told Sky Sports News that one of the sticking points is the relegation compensation clause that was part of the opening offer from Amanda Staveley’s PCP Capital Partners.
It is our understanding the relegation clause has not been withdrawn from the offer despite further talks, and remains unfavourable to current owner Mike Ashley.
If said clause is activated (upon relegation), Ashley, who goes on a family holiday on Friday, would have to pay a substantial sum back to the new owners.
Newcastle have not won a Premier League fixture since October 21 and are now 16th in the table, just three points above bottom side Swansea.
Sky Sports News understands an increased offer of around £300m has been made by Staveley's PCP Capital Partners, who have been in talks with Ashley.
Ashley and Staveley met face-to-face for the first time last week in a London curry house.
Discussions over an improved bid and Ashley funding the January transfer window while the takeover is being ratified by the Premier League were on the agenda.