Two more directors have quit the troubled Premier League club Newcastle United.

The latest resignations mean six top executives have left the club since it floated on the stockmarket last year.

In a move that stunned the City, Sir Terence Harrison, former boss of Rolls-Royce, is stepping down as non-executive chairman of the football team's publicly-quoted parent company.

Some want Sir John Hall to reduce his control of the club

He is believed to have wanted Sir John Hall, who recently returned as chairman of football club, to reduce his family shareholdings from 57% to below 50%.

It is not clear if Sir John is willing to give up control of the club.

Sir Terence could have faced opposition to his plans to reform the structure of the club by creating one board to control football matters as well as off the pitch activities.

He is also understood to have been concerned about being associated with a club that has undergone a traumatic year and has many difficult decisions still to take.

As expected, John Mayo has also quit as a non-executive director of the parent company to spend more time in his new role as finance director of GEC, the engineering giant.

The latest round of resignations follows the recent departure of football club chairman Freddy Shepherd and his deputy Douglas Hall after they allegedly made derogatory comments about Newcastle women, fans and Alan Shearer, the club's star striker.

Alan Shearer was insulted by Shepherd and Hall

William Davies, football analyst at stockbroker Albert E Sharp, said: "There is a perception in the City that the company is excessively influenced by the Hall family, whose control seemed to be declining after the Freddy Shepherd and Douglas Hall debacle.

"They now appear to be reclaiming their grip on the group.

"The company is more like a private company with a public quote and is an unattractive investment for outside investors," he added.

Sir Terence and Mr Mayo said: "We believe it is now constructive for us to resign so that a new non-executive team, with the time available, can start afresh to work together with the representatives of the major shareholders in the support of the executive, management and team."

Chief executive Freddie Fletcher said: "The board would like to thank Sir Terence Harrison and John Mayo for the contribution they have made in the formation and development of Newcastle United and wish them well in their future endeavours."

He said that the board would be meeting as soon as possible to seek replacements.

Shares in the Newcastle fell 1p to a year low of 85½ compared to a flotation price of 135p.
 

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