Newcastle coach Wayne Bennett couldn't confirm on Monday night if outstanding payments had been made to 20 staff and players, as the Knights ownership crisis appeared to be coming to a head.
There is speculation owner Nathan Tinkler could hand over control of the club to the Knights Members Club within the coming days and return the blue and red jersey to the Newcastle community.
News Limited reported that Newcastle officials held crisis talks with the NRL in Newcastle on Monday, as the league looks to end the saga amicably, potentially as soon as Tuesday.
Knights Members Club chairman Nick Dan has said legal action will be brought on Tinkler if he doesn't comply.
Tinkler's three-year ownership of Newcastle was made almost untenable after he failed to pay the wages of several staff last week, including coach Wayne Bennett and star fullback Darius Boyd.
The NRL vowed last Friday to take action to protect the players and staff at the Knights.
Tinkler's Hunter Sports Group says the outstanding wages will be paid this week, but after Monday night's gut-wrenching 15-14 loss to Manly, Bennett didn't know whether it had happened yet.
"No, I can't clarify that today because I haven't worried about it today," Bennett said.
"We came here to play football today and we are all focused on that.
"I'm not in a position to talk about off field stuff, I've been in Sydney all day, haven't spoken to the CEO (Matt Gidley) and haven't spoken to anybody at all about it."
Dan has called upon Hunter Sports Group to transfer the assets of the Knights, including the $10.5 million bank guarantee, to the members club with a view to setting up community ownership.
But he fears that will only happen through legal action.
"Very much so," Dan told 2KY's Big Sports Breakfast on Monday.
"We have to (take legal action) now.
"The members club issued some notices a few weeks ago saying we want the assets to be transferred to the members club including the bank guarantee, and we haven't had that done yet.
"It has got to a stage where if that doesn't happen we will take whatever action necessary to make that happen."
Dan said the situation was undoubtedly affecting Knights players and that the current crop of stars might have to make sacrifices for the future wellbeing of the club.
"I would think it would be at the back or the forefront of their minds at times and that is really unfortunate," he said.
"But unfortunately maybe everybody will have to take some short term pain for long term gain."
Asked if Tinkler might come good and hand over the Knights NRL franchise without having the matter dragged through the courts, Dan said: "I don't know.
"Nathan in his own man, he controls his own destiny and we have never been part of that."
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