Newcastle United face the prospect of going into administration if Kevin Keegan wins his compensation battle for unfair dismissal when the case reaches a conclusion on Friday.

In an ironic twist of fate, Geordie legend Keegan's £9million compensation claim could have disastrous consequences for the Magpies in their bid to return to the Premier League following relegation last season.

The cash-strapped club, who are currently second in the Championship, could be given a ten-point penalty deduction by the Football League should chairman Mike Ashley declare administration.

Newcastle spent the summer selling off the family silver in a bid to balance the books, with Sebastien Bassong, Michael Owen and Obafemi Martins all moved on, but a £9million black hole in the accounts could be fatal.

Former England manager Keegan walked out on the club over a lack of control in the club's transfer policy at the start of last season, claiming Ashley had broken promises over how the club would be run, making the position untenable.

Ashley's legal team counter claim that Keegan was fully aware of the role director of football Dennis Wise would undertake at the club and that his decision to quit was not forced by the club's transfer policy.

Ashley, described by fans as part of the 'cockney mafia', has been trying to sell the North East outfit over the summer, with buyers reportedly unwilling to put pen to paper on a deal until the court case has been decided.