Chinese-linked investment firm on cusp of buying Newcastle Jets

Newcastle Jets are hoping their longstanding financial woes are coming to an end after their owner struck an agreement in principle to sell the club to a Chinese-linked investment firm based in Australia.

After first putting the club on the market nearly a 18 months ago, Jets owner Martin Lee is on the cusp of selling the club to Sky Jade Capital, a Melbourne-based investment firm with three offices in China and describes itself as ''a boutique investment firm'' on its website.

Newcastle Jets are close to being sold after a period of financial difficulty.Credit: Getty

A deal is yet to be finalised but sources with knowledge of the discussions confirmed that Sky Jade Capital has successfully negotiated the purchase of the licence and is awaiting approval from Football Federation Australia, who will undertake their due diligence on the prospective owners.

FFA checks all prospective owners before approving transfers of A-League licences. FFA would not comment on Sky Jade's bid for Newcastle Jets. A spokesman for the organisation said all bids were assessed on a case-by-case basis and the due diligence process could include consultation with the federal government's Foreign Investment Review Board.

Chinese lighting magnate Martin Lee is keen to offload the Newcastle Jets to a new owner.Credit: Getty Images

Sources with knowledge of the deal suggest FFA approval is the final hurdle in the way of the takeover of the club, which is in desperate need of funding. The Jets had previously been in talks with a Sydney-based consortium over a sale in June but it appears Sky Jade is now the frontrunner to buy the club. Details such as the sale price are yet to be confirmed, but sources said Sky Jade had flagged their intention to keep the club in Newcastle instead of a possible relocation.

Newcastle Jets declined to comment on the negotiations when contacted by the Herald.

Should the sale be approved by FFA and finalised between Lee and Sky Jade, the Jets will hope this leads to an end to their past two years of financial hardship. Despite a resurgence that followed Lee's purchase of the club in June 2016, which culminated in them reaching the 2018 grand final, the club has been crippled by cash flow problems over the past two seasons.

Trade tariffs between China and US heavily impacted Lee's LED lighting company, while Chinese government restrictions on money being moved out of the country led to a lack of resourcing for the Jets over the past two seasons.

Lee reportedly paid $5.5 million for the club's licence in 2016 and had tipped in more than $15 million in operational costs over four years.