US-based consortium FC32 have been exploring a takeover of the Jets for more than six months and appeared a likely saviour of the embattled club.
However, consortium principal Paul Francis told the Newcastle Herald on Thursday that they had withdrawn from negotiations after the group's latest bid was rejected by the current owners - the chairman of rival clubs who have been bankrolling the Jets since 2021
"We put forward the best bid we could," Francis told the Herald from the US. "We increased it but it was not competitive with the other bids. We have to move on."
It is understood FC32 have walked away from the table and returned previously during negotiations.
Jets executive chairman Shane Mattiske was hopeful communications with FC32 would continue, but if they were no longer a contender, he said there were "multiple" alternative options.
"There are at least four parties actively involved in the due-diligence process," Mattiske said.
"Two of them have made formal offers. The ownership group is reviewing those offers and assessing them in relation to closing a deal in the very near future."
Australian Profession Leagues (APL) chairman Stephen Conroy indicated last month that the Jets had until the end of the season to finalise a new owner or risked folding.
One of the remaining consortiums is understood to be based in Melbourne and is led by investors who have previously been involved with an A-League club in Melbourne.
The Herald has also been told another overseas group has expressed interest.
FC32, which is partially backed by the investment group Athletic Ventures, owns Swiss second-tier club AC Bellinzona, and plans to set-up a network of clubs around the world.
The Jets, which has been bankrolled by the owners of rival clubs since January 2021, had been slated to be next.
FC32, after agreeing on a purchase price for the Jets, sought to renegotiate after the APL was unable to provide key information about the league and its financial projections.
The APL made half its staff redundant earlier this year and last week had to sign a deal with a new broadcast company after the collapse of Global Advance.
This season each franchise received $2 million in grants, which was cut from $2.3 million. The APL is yet to confirm what the dispersal will be next season.
The lack of clarification had a major impact on FC32's decision to walk away.
"From a business point of view, we can't take that risk, especially when we are starting out," Francis said. "There was a comfort level that we pushed beyond and we can't go any more.
"We have to focus on the other acquisitions in our portfolio.
"This has been so circular we have to move on."
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