The mining and racing magnate has made waves in the A-League since taking over the Jets in late September and is now keen to dip his toes into the National Rugby League pool after making an offer worth up to $10million over 10 years, including their current debt of $2.75million.
But Knights management have said that the offer is not lucrative enough and are reluctant to enter into a sale.
"With no guarantee Nathan will at least cover our existing revenues, I don't see how it puts us in a superior financial position to the one we are in now," Knights chairman Robbie Tew told the Daily Telegraph.
"I've conveyed to him that we don't think the offer goes far enough but I'm not sure if that is the end of it or not. The offer only arrived last night and I've had further correspondence today but that is as far as it has got."
However, Jets executive chairman Ken Edwards believes the Knights would be foolish to let this opportunity pass.
"Nathan's been in negotiations with the Knights now for more than 12 months and the offer is a fair and genuine one," he said.
"It pays down the debt which is close to $3 million and just as he has demonstrated with the Jets since he took over the club, it is all about the community with Nathan and he is genuine about that."