Danny Mills claims that an investor would have to be willing to spend £500million on buying and keeping Newcastle United in the Premier League if a takeover were to happen.

The former Leeds United and Manchester City defender, speaking exclusively to Football Insider assistant editor Russell Edge, says that the £300million asking price would have to be backed up with another £200million worth of investment over the next couple of years if the Magpies were to remain a top-flight club.

As reported by The Chronicle, Newcastle United owner Mike Ashley is seeking a £300million sale if he is to leave St James’ Park, but that potential investors view it as too high for a club battling against relegation.

Mills says that buying the club will be the first of many expensive transactions a new owner would have to make if they are to keep the north east side in the Premier League, suggesting they would have to almost double they spend on things like transfers.

Mills told Football Insider: “Valuations are whatever somebody wants to pay for it. You look at Newcastle and that’s (asking price) maybe what, £300million?

“They’re struggling and they’re going to continue to struggle, that’s going to take another £200million to guarantee Premier League football season in, season out.”

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Newcastle have officially been up for sale for two years and while there has been plenty of speculation over Ashley’s future, there have been no concrete deals made at St James’ Park.

The Magpies currently sit in the Premier League relegation zone after Saturday’s defeat to Chelsea, Steve Bruce’s men picking up just two wins from their opening nine games.

In other Newcastle United news, Football Insider can reveal that a left-footed Everton player is keen on making a move to the Magpies after growing up in the north east.