Former Newcastle owner Mike Ashley is targeting a deal for Coventry City.

The Daily Mail says Ashley is planning a deal to buy Coventry on the cheap after being named as the preferred bidder for their ground, the Coventry Building Society Arena, on Friday.

The former Newcastle United owner is ready to do a deal that will enable the Sky Blues to continue playing at the troubled stadium, but as the landlord he will have a significant element of control over Coventry's commercial activities, putting him in a strong position to negotiate a future purchase of the Championship club at a knockdown rate.

With a hotel, casino and conference centre on site, the CBS Arena is a profitable business already, while Ashley is also in talks with Coventry City Council about adding another hotel and car park.

Ashley's move to snap up the CBS Arena follows his failed takeover bid at Derby County earlier this year, in which he entered protracted talks to buy the club without securing the stadium.