Newcastle owners threatening to walk away from £47m deal - Report

A sobering update on Newcastle's January transfer plans has emerged from The Telegraph's Luke Edwards today.

He reports that, as things stand, Newcastle owners 'do not think a move for Kalvin Phillips makes financial sense', revealing that we're ready to walk away from talks based on Man City's current demands.

It's believed the £7m loan fee is deemed 'too high' for five months of football and the club aren't keen on committing to an obligatory purchase clause worth £40m at the end of the season, making the loan-to-buy deal worth a total of £47m.

The deal is not dead, but it seems City's demands must come down before the window closes. There is 'some hope' that the Champions' stance will change in order to facilitate a much-needed move away for the 28-year-old, but there's also a risk of Premier League rivals stepping in while we take a step back, as Man City are 'confident' others will meet their demands.

With news of Joelinton's injury being potentially worse than first feared and the likes of Joe Willock and Elliot Anderson still struggling to shrug off niggling injuries, we're in desperate need of midfield reinforcements. Phillips could plug a gaping hole, but I understand our refusal to pay a whopping loan fee and price permanent deal; especially in the midst of FFP constraints.

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