Former Newcastle United owner Mike Ashley is 'planning' to buy Coventry City FC at a knockdown rate - according to the Daily Mail.

Ashley is also believed to be the preferred bidder for the Coventry Building Society Arena after the stadium's managing company Coventry Arena Limited said it would go into administration.

The Daily Mail said Ashley plans to take over the ground which would put him in a stronger position to negotiate a cheaper price for the club.

Should the billionaire businessman manage to buy both club and ground it would seriously question the need for a new stadium to be built near Kenilworth.

The Sky Blues have announced plans with the University of Warwick to build a new stadium which will also form part of a proposed eco-park.

However, a planning application for the development is yet to be submitted, and it may not be needed if the club can secure a long-term future at the CBS Arena.

The Daily Mail has also reported that Ashley - who unsuccessfully tried to buy Derby County this year - is in talks with Coventry City Council about building a second hotel and a new car park to the arena.

A statement issued by ACL on Tuesday (November 2) said it had identified a "preferred bidder" following an "accelerated sales process" - believed to be Ashley.

A company spokesperson added: "Arena Coventry Limited (ACL), Arena Coventry (2006) Limited and IEC Experience Limited have confirmed that they have applied to the court for the companies to be placed in administration.

"We anticipate that the administration orders will be made in the forthcoming weeks.

"The companies and the proposed administrators from FRP Advisory have run an accelerated sales process to sell the business and assets of the companies and have identified a preferred bidder.

"The arena will continue to trade as normal. We would like to thank all the working parties involved in helping the companies get to this stage and we are delighted that the doors will remain open to this flagship venue."