Newcastle are second from bottom in the league table at the moment and and are in real danger of going down to Championship at the end of the season.
Nicholas has suggested that the Magpies do not have any chance of surviving in the top flight of English football.
Following Rafael Benitez’s side's 3-1 defeat to Southampton away from home at St. Mary’s Stadium in the Premier League on Saturday afternoon, the former Arsenal and Celtic forward strongly criticised the team and their performance.
"It was lifeless - there was about five minutes and 10 minutes of energy in the second half,” the former Scotland international told Sky Sports. “When they were 3-0 down, they showed a little bit of fight. It's just shambolic, it really is.
“As bad as previous teams have been in the Premier League, I honestly don't remember a big club of this stature having such a bad defence with so many different managers trying different things and spending the money they've spent.”
Nicholas also discussed Newcastle’s upcoming Premier League matches against Swansea City, Manchester City, Liverpool and Crystal Palace.
“I don’t think they have a prayer, I really don’t,” said the Scotsman about Newcastle’s survival chances. “If they could hang in, Swansea, there is a possibility they could win that, Man City, I would be surprised, don’t fancy anything at Liverpool, Palace could pick them off.”
Newcastle’s next two Premier League matches against Swansea and City are at St. James’ Park, and perhaps they could get something from those matches due to home advantage.
A win against the Swans is an absolute must, but even a draw against Manuel Pellegrini’s side does not look feasible.
Winning against Liverpool at Anfield is going to be tough as well, but the Magpies can pick up all three points against Palace at St. James’ Park later this month.