Keegan’s huge demands could put the club into administration if owner Ashley meets them.
Keegan is demanding £9million for the rest of his three-year deal but is also claiming for loss of future earnings, according to The Sun.
A source told The Sun: “Keegan is crazy. Does he really want to bankrupt Newcastle?
“It is madness to think he should be paid that much but perhaps he sees this as a last big payday.
“For a bloke who says he loves the club, this is all very, very strange.”