Gino Pozzo, the Watford owner, has rejected a formal offer from a New York-based media company that wants to buy more than a third of the club. Prolific Media Holdings values Watford at £350 million and has offered £125 million for a 35.7 per cent stake, but talks have broken down during the due diligence stage.

Through their parent company, Hornets Investment Limited, Watford entered into a 60-day exclusive negotiating period with Prolific this summer, which recently expired. By signing a term sheet with the American group, Pozzo indicated an interest in selling just over a third of his shares, which would have generated a huge profit given that he paid £500,000 to buy the club from Laurence Bassini six years ago, as well as