Spanish club Real Mallorca, who went down 1-3 against Barcelona yesterday are in ongoing talks with former Newcastle owner Freddy Shepherd over a possible takeover bid. Former Mallorca president Vicenc Grande put his 93 percent stake in the club up for sale after his Grupo Drac real estate company filed for insolvency in June. Grande was replaced this month as president by an associate, Joaquin Garcia, who said he had until the end of January to find a new investor.

The controversial and often outspoken Shepherd, who owns Shepherd Offshore has made Mallorca his second home. Mallorca are looking for a €40 million investment from the English businessman. Mallorca are struggling to survive in the league and have just signed Dudu Aouate from Deportivo la Coruna as a replacement for first choice keeper Miguel Moya.

“At the moment there is only contact with Freddy Shepherd, the only party formally interested in buying the club,” Mallorca spokesman Hector Romero told Reuters.

“It’s clear that the international economic situation makes the functioning of all companies more difficult and our club is no exception,” he said.

“But to meet the contractual rights of players you have to make financially solvent guarantees.”