Freddy Shepherd closing in on cut-price deal to buy Real Mallorca

Former Newcastle United chairman Freddy Shepherd is closing in on a cut-price £20million deal to buy Real Mallorca.

He could take charge before the Magpies visit the island next month.

The August 3 friendly in Palma's ONO stadium could lead to an intriguing showdown between Shepherd and Newcastle's new owner Mike Ashley.

Ashley paid Shepherd £37m for his Toon shareholding a year ago. Ashley banned Shepherd from his executive seats at St James' Park and let the former chairman know he wasn't welcome at the ground.

The two heavyweights could come face to face for the first time in a year when Newcastle take part in a four-club tournament on the sunshine isle.

Shepherd will present a formal written offer for Real on Wednesday after his lawyers and accountants complete a two-week investigation into the finances of the cashstrapped La Liga club.

The multi-millionaire Geordie has reduced his offer from £32m to about £20m following the sale of star player Daniel Guiza to Fenerbahce. And Argentina international Jonas Guitierez, who Real valued at £7m last season, has moved to Newcastle in a deal that could be subject to a legal challenge from the Spanish outfit.

Mallorca's problems stem from a crash in the Spanish real estate market.