Real Mallorca are demanding £8million compensation from Newcastle for Jonas Gutierrez.
The Argentina international left the Primera Liga side for the North East on Wednesday after buying out the remaining two years of his contract in Spain.
With that effectively making him a free agent, cash-strapped Mallorca are threatening to report the issue to Fifa in an attempt to secure a financial package they deem suitable for a player of international pedigree.
The Spanish club's president Vicente Grande claims that they will be left on the brink of administration if the deal is allowed to stand and has urged world football's governing body to intervene.
"Because of our financial crisis, this could really damage us. In fact, it has come at the worst possible time," said Grande.
"We cannot understand the attitude of the player who has done this to force a move to England.
"This matter is not closed because the club has decided to go to FIFA to reclaim our right. The minimum we want to recuperate is the £8million Portsmouth offered us in the winter.''
Despite the president's calls for action, Gutierrez is adamant that he has done nothing wrong and is looking forward to beginning a new chapter in his career.
He said: "My conscience is clear and I am not worried by the actions of Real Mallorca. I just want to play for Newcastle in the Premier League."
Another issue which could scupper Mallorca's plans for compensation involves the dual ownership of Gutierrez that the club shared with his first club Velez Sarsfield.
The Argentinean outfit insist that the winger was due to return to them next season anyway, although they too have suggested that they will be exploring the legalities of the 25-year-old's move to England.
"Jonas Gutierrez was due to return to Velez Sarsfield on 1st July in accordance with the contract signed with Mallorca, owners of a 50 per cent stake of his economic rights," said Velez president Alvaro Ballestrini.
"After three seasons on loan at Mallorca he would have had to come back to Velez if Newcastle had not come in."
With confusion now surrounding the transfer Ballestrini has also been quoted as saying that there still remains a possibility that Gutierrez will return to his homeland, rather than the Premier League.
"I want to contact the agent of Jonas and the directors of Newcastle," he told radio station Cadena Sar.
"We have requested the player's presence at training in Buenos Aires on 7th July and after that we will announce our official position."