Joao Pedro sell-on clause revealed as Newcastle United close in on Watford forward

Newcastle had an initial bid of £20million turned down by the Championship club, who value the player at a lofty £35million.

While United aren’t considering getting close to Watford’s valuation, they are preparing an improved offer in the region of £25million plus add-ons.

It is unclear whether Watford will accept an improved offer from Newcastle at this stage as manager Rob Edwards is keen to keep the player at Vicarage Road this season.

But Joao Pedro is understood to be keen on a swift return to the Premier League following Watford’s relegation last term.

The Brazilian scored three goals in 15 starts for Watford in the top flight last season, including a late equaliser against Newcastle at St James’s Park back in January.

Watford will also have to consider a 10-per-cent sell-on fee they would owe to Joao Pedro’s former club Fluminense upon selling the player. The Hertfordshire club paid a reported £3.6million for the youngster back in 2018, before he joined officially in 2020.

Given the player’s potential and likelihood to increase in value, Watford may look to hold out for a fee closer to their valuation in order to maximise their profits.

Hypothetically, if Watford were to accept a £25million bid for Joao Pedro, their profit – based on the reported initial fee paid to Fluminense – would be £21.4million, of which £2.14million would be owed to the Brazilian club.