Mark Douglas has dropped some insight on potential Newcastle United takeover investors which he claims is problematic for Mike Ashley.

The Lowdown: Newcastle valuation drops

As per Sportico (via The Chronicle), the valuation of the St. James' Park faithful has dropped steeply since the global pandemic, with a new value of £190m being reported.

That is the 11th highest in the Premier League, citing that the ongoing threat of relegation hugely depresses the valuation.

There was a point in the season where Steve Bruce's team were seriously under threat of dropping down to the EFL Championship, and so this has seen the valuation of the North East club plummet.

The Latest: Insight on potential takeover investors

Writing in his latest piece for The Chronicle, Douglas has shared that it is understood that rival investors to the Kingdom of Saudi Arabia (KSA) group would value the Tyneside club under the original £350m agreement.

Douglas adds that this is problematic for Ashley, as he wants the value that he has put on the Magpies to be consistent.

If the KSA consortium were to pull out of the deal altogether, then other potential investors may not want to buy at the price that he has set.

The Verdict: KSA consortium deal key

It is key that if there is a takeover of the Toon, then it is by the KSA consortium, to satisfy all parties involved.

For Ashley, he would then be able to sell at the valuation that he has put on NUFC, and the consortium would then be able to take over as per their aim.

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There would certainly be question marks over whether the chief executive of Sports Direct would consider selling to anyone else if the consortium pulled out altogether, especially if nobody is willing to meet his original valuation.

Nonetheless, with Newcastle's value depreciating, Ashley will want to get the deal done as soon as possible in order to get his money's worth.

In other news, find out which 'magnificent' ace Newcastle are keen on signing here!