Freddy Shepherd tells Mike Ashley to 'get real' over Newcastle United sale price

Newcastle owner Mike Ashley has been warned by the club's former chairman Freddy Shepherd: 'Don't try to make a profit out of a disaster.'

Shepherd has urged the billionaire sportswear retailer to be "realistic" in his asking price for the Magpies if he is serious about selling up at a time when the world is in financial meltdown.

Shepherd said: "The price Mike Ashley is asking has to reflect the global economic crisis. Above all, it has to be realistic and attainable.

"Mike Ashley says he wants to go, the fans want him out, but with the value of companies tumbling by the hour the price must be attractive to lure serious investors. Some of the figures that have been bandied about are laughable.

"Serious investors know what he paid for the club and what he has put in - so he must accept there are no fast bucks to be made in this market.

"One of our biggest banks HBOS had to take a massive hit and most companies and institutions have suffered too. Newcastle United is no different.

"Mr Ashley has to do what is best for the club. He must not try to make a profit out of a disaster."

Last month Dubai-based investors claimed Ashley was asking £481million for the club he paid just under £134million for in the summer of 2007.

Among those Dubai interests who laughed that figure out of court were Zabeel Investments, who on Friday made an indicative offer for Charlton.

Since investment bankers Seymour Pierce took over responsibility for finding a buyer last month, Ashley's asking price has reportedly dropped to between £300m and £350m and they claim to be talking to two seriously interested parties from abroad.

But Arab business experts agree with Shepherd that the sale price must fall much further to clinch a sale.

One well-placed Dubai source said: "I think Ashley could have sold Newcastle last week for £250m in two hours - I know of one definite buyer who would have done it then - but because of the global financial crisis, this week is looking different."

Shepherd, who banked £37m from the sale of his 28 per cent stake in the club, believes that if the beleaguered Ashley is to find a buyer in daunting economic conditions he must further drop his price to "something slightly north of £200million".

Shepherd added: "He couldn't be trying to sell the club at a worse time. Events both on and off the football pitch are well and truly against him.

"But if he is looking to get a sale done before the January transfer window I think he needs to be looking at a price just north of £200m.

"He is not going to make any profit on that figure, but he is going to get his money back. That would be fantastic business the way things are going."

The problem for Ashley is that come January, if Newcastle are unsold and still in the drop zone, there will be calls for him to invest in players to stave off relegation.

One source close to Ashley camp estimates it could take up to £50m to prevent the Magpies being relegated.

That would hurt a man who has seen the share value of his Sports Direct company fall by £1.5billion in 20 months.

A quick, cut-price sale is fast becoming Ashley's most inviting option.

Mike Ashley is close to extending manager Joe Kinnear's deal until the end of the season.

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