Football Federation Australia is poised to take the first steps towards removing the Newcastle Jets' A-League licence by issuing a show-cause notice to owner Nathan Tinkler this weekend.

The FFA have imposed a January 31 deadline for Tinkler to settle debts incurred by the crisis-torn club, but the mining magnate indicated this week he would only pay creditors on his terms.

There has been speculation the FFA would step in and withdraw the licence if Saturday's deadline was missed.

However, before that can happen, the governing body would first have to give Tinkler 14 days to show why he should keep the licence.

Since Tinkler announced he wanted to sell the Jets in August, he has refused to put a single cent into the club, with more than $500,000 owed to a host of creditors.

More than $140,000 is outstanding to the Northern NSW Football Association, and a six-figure fee to the University of Newcastle for the use of their training facilities is yet to be settled.

Money owed for staff wages has been found, thanks to revenue gained from sponsorship and membership, but superannuation payments are six months behind.

Tinkler, who sacked five senior players and three members of the coaching staff this week, has maintained he will pay the debts - but only once he has received $5 million he claims is owed to him by the FFA from when he took over the club in 2010.

"FFA is at me for about $500,000, and I am at them for $5 million," Tinkler said this week. "If they want to set a deadline to resolve those two issues, then I will be more than happy to resolve it by Saturday."

At least two overseas parties are interested in buying the club. Stephen Thompson, whose family owns Scottish club Dundee United, is believed to be ready to step in immediately - but he won't pay the $5 million Tinkler's demanding.

Tinkler is running the club after chief executive Robbie Middleby and chairman Ray Baartz quit this month following a mid-season review.

And youth team coach Michael Bridges resigned on Friday morning, capping off a traumatic week.

"We thank Michael for his contribution to the club as both a player and a coach and everyone at the club wishes him the best for the future," Tinkler said in a statement.

"We have the utmost respect for Michael and respect his decision but it is unfortunate he will not be involved in taking the club forward."

The Jets return to action next Friday against Brisbane, with under-fire coach Phil Stubbins set to field a team made up of youth team players following the recent exodus of seven senior players. - AAP