The proposed takeover of Gateshead FC is on the verge of collapsing due to third-party complications, prospective buyers Flacks Group have revealed. The American private investment firm, founded by Manchester-born billionaire Michael Flacks, announced in an open letter that their deal to acquire the National League club is in severe jeopardy after discovering that another organisation, Shoreline Limited, had previously agreed to buy the club from the current owners in March.
Flacks Group stated that Shoreline had submitted court documents four months later confirming their initial agreement was null and void, which allowed Flacks Group to step in and pursue a buyout. The purchase had seemed close to completion earlier this month, subject to approval from the Independent Football Regulator (IFR). However, negotiations have ground to a halt because Shoreline has refused to provide written confirmation relinquishing its ownership claims over the club, despite legal filings indicating it does not wish to own Gateshead. Flacks Group also noted that Shoreline is currently attempting to acquire an EFL team, pointing out that regulations prohibit anyone from controlling more than one English football club.
This takeover crisis brings further misery to Gateshead during an extraordinarily difficult period both on and off the pitch. The Heed are currently rooted to the bottom of the National League table having managed just four points from their 14 matches, suffering defeat in each of their last eight league outings to sit 11 points adrift of safety. The club remains managerless after sacking Lee Cattermole at the start of the month, while staff members and players experienced late wage payments for the month of September.
Facing this administrative stalemate, Flacks Group concluded that it is unable to proceed and expects it will "reluctantly have to withdraw from the purchase," emphasising that walking away is "not something we wish to do." While the prospective buyers continue to engage with the IFR in hopes of finding a resolution with Shoreline and securing a positive outcome for Gateshead, the future ownership of the struggling club hangs in the balance.