Report: Relegation causes Newcastle United’s value to nosedive by £125 million

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Newcastle United’s value drops by £125 million if they are relegated, according to a report.

Being relegated from the Premier League could hinder Mike Ashley’s attempts to sell Newcastle United, according to a report from The Daily Mail.

Ashley has been negotiating with Amanda Staveley over the sale of Newcastle for the past couple of months and an agreement was thought to be close after both parties were photographed leaving the same building a little earlier this month.

But there still seems to be an impasse, with Staveley’s PCP Capital Partners only offering £250 million so far – £100 million less than the United owner’s valuation of his club.

And The Daily Mail has claimed that the Magpies’ value would plummett by £125 million in the event that the Tyneside club dropped back into the Championship.

The report adds that any agreement between Ashley and Staveley would “reflect the possibility of relegation” but finishing in the bottom three wouldn’t render the deal as dead.

As it stands, relegation is a very real possibility as Rafael Benitez’s side sit 18th in the Premier League table after picking up just one point from their last nine games.