Nah, I'm pretty sure it was Fat Sam.
http://www.telegraph.co.uk/sport/football/2298242/Newcastle-on-verge-of-signing-Luka-Modric.html
http://www.dailymail.co.uk/sport/football/article-561745/Newcastle-set-smash-club-record-fee-20m-Croatia-playmaker-Luka-Modric.html
Then, this happened.
http://www.guardian.co.uk/football/2008/apr/26/tottenhamhotspur.newcastleunited
Edit: Maybe it was Keegan. But Allardyce said this: http://www.tribalfootball.com/blackburn-boss-allardyce-spurs-star-modric-should-have-been-newcastle-signing-825961