Gateshead takeover close to collapse, says prospective owner Flacks Group

The planned takeover of Gateshead is close to collapsing, according to the American investment group that agreed to buy the club. Flacks Group says a third party is to blame.

Gateshead play in the National League, the fifth tier of English men's football. Flacks Group is a private investment company set up by Manchester-born billionaire Michael Flacks. In early October the club confirmed that a sale agreement had been reached in principle with the group. A club update on 11 October said the proposal involved acquiring about 90% of Gateshead's shares at no cost.

Flacks Group now says the deal is in trouble because of Shoreline Limited. The group says it was told in March that another party had agreed to buy Gateshead from its owners. It claims Shoreline tried to buy the club, but four months later filed court documents confirming that its agreement was null and void.

Flacks Group also says Shoreline has refused to give written confirmation that it has no ownership claim over Gateshead Football Club. It further alleges that Shoreline is trying to buy another club in the English Football League, the three divisions below the Premier League.

Earlier this month the takeover looked close to completion, subject to approval from the Independent Football Regulator, the body that oversees ownership and finances in English football. Flacks Group now says it cannot go ahead. It expects it will reluctantly have to withdraw from the purchase.

The club's position on the pitch is already difficult. Gateshead have taken four points from 14 National League games, a point being one earned for a draw and three for a win. They have lost each of their last eight league matches. Manager Lee Cattermole was sacked at the start of October.

Off the field, staff and players had their wages for September paid late. For people who support the club, the wait for a clear answer on who will own it is hard in its own right, especially with results going the wrong way.

Flacks Group has said it still hopes to reach an outcome, but it has not said what happens to the club if the sale falls through. Gateshead's next steps will depend on whether the dispute with Shoreline can be settled.