Mike Ashley is believed to have been in Abu Dhabi last night in an attempt to push through a quick sale of Newcastle United, but the club's embattled owner has been informed by supporters that protests against his regime will continue. After a dismal summer that has left Newcastle with no manager, no long-term benefactor and an ill-equipped squad, fans are establishing their own representative body.

Concerns that Ashley would not deliver on his promise to cut his ties with Tyneside have lifted after the billionaire sportswear retailer departed for the Middle East to seek potential buyers. Dennis Wise, the executive director (football) and Tony Jimenez, the club's vice-president, were dispatched to Dubai for the same purpose, although Dubai International Capital, the private-equity investment arm of the Dubai Government which has been courting Liverpool, denied any interest in bailing out Ashley.

Fans have been mobilised by Kevin Keegan's resignation, the influence of Wise and Derek Llambias, the managing director, and the failure to strengthen the team significantly. They are preparing for an attritional campaign to oust Ashley, who has requested an end to the sort of demonstrations that accompanied Saturday's home defeat by Hull City. The Newcastle United Supporters Group will be formed at a public meeting near St James' Park this evening.

“The protests at the running of our club by Ashley, Wise and Llambias need to continue and collectively Newcastle United supporters require an organisation which has a mass membership, is inclusive and has a legitimacy to represent,” a joint statement from The Mag and true faith fanzines said. The mood is one of constructive militancy. In spite of Ashley's contention that his family “would be assaulted” if they attended Newcastle matches, police praised the fans “for the way in which they behaved”.

With the future of the club so uncertain, the need for action by supporters is obvious. So, too, is the sense of turmoil. Newcastle's search for a manager has been overshadowed by Ashley's decision to sell. Having failed to persuade Keegan to return, a shortlist of candidates comprising Gus Poyet, Paul Ince and Didier Deschamps appears untenable given the close association of each man with Wise.

By the end of last week, almost 40 applications had been received, but whether any of a suitable calibre would agree to work under a structure that is unlikely to survive the change of ownership, is dubious. Keegan is again the bookmakers' favourite to reassume the role from which he reluctantly resigned 12 days ago.

Morale in the Newcastle dressing-room has understandably suffered. Keegan had lost none of his popularity among the players, who are bemused by recent events. On August 17 they drew 1-1 away to Manchester United; yesterday, Steve Howey, their former defender, suggested that “relegation is not an unrealistic possibility until the situation is sorted out”.

A quote in yesterday's Evening Chronicle from an unnamed player is representative. “The players did not speak [to the media] after the [Hull] game because how can we?” he said. “We are not allowed to be honest and say what we want. It's time for the people upstairs to speak up for themselves rather than reel us out to do it for them. It's a shambles.”

There was anger from other sources. Freddy Shepherd, the club's former chairman, responded tetchily to Ashley's insistence that Newcastle “might not have survived” without the £110million he invested to reduce debts. That claim was rejected vigorously by Shepherd, who, along with the Hall family, sold his shareholding last summer to Ashley, who failed to complete due diligence.

“Absolutely ridiculous,” Shepherd said. “The only reason he had to pay a large portion of the debt was the cost of the stadium. But if you look at today's prices, it was a great deal to build and expand St James' Park when we did. What he didn't realise was that he had to pay off the mortgage. There was a clause in the contract that if the Halls ever lost control, around £57million had to be repaid straight away.”

Supporters will recall the departure of managers mid-season, the accusations of meddling in transfers and the questionable signings, but Shepherd defended his record at Newcastle. “It was in good shape,” he said. “We didn't have any problems when I left. There was no way the club was going anywhere but upwards. I make no apology for the fact we were in the Champions League twice and qualified for Europe more times than I can recall.”

Shepherd, who refused to rule out fronting a consortium to buy back the club, said Ashley should sell for Newcastle's “true worth”, about £230million. “He should get back what he has put in,” he said. “That would prove he does love the club.”

Newcastle have confirmed that Alan Shearer, their record goalscorer, is no longer employed as a sporting ambassador, but denied that the decision is due to the former striker's public criticism of recent events.