Prospective Gateshead takeover close to collapse

The takeover of National League club Gateshead is close to collapsing because of third-party involvement, according to prospective owners Flacks Group.

In an open letter , external written by the American private investment group, initially set up by Manchester-born billionaire Michael Flacks, the deal is in serious jeopardy after it was informed another party had agreed to buy the club from the current owners last March.

Flacks Group claims Shoreline Limited attempted to purchase the club but filed court documentation four months later to confirm that its agreement was null and void, and so proceeded to enter negotiations with the current ownership.

Flacks Group's takeover looked to be close to being completed earlier this month, subject to approval by the Independent Football Regulator (IFR).

In finding out about Shoreline Limited's involvement, Flacks Group now claims that Shoreline has refused to respond to its inquiry over Shoreline's alleged involvement with Gateshead.

The group has also made an allegation that Shoreline are interested in buying an EFL club.

"We needed Shoreline to confirm in writing that it would give up any ownership claim it might have over Gateshead FC," an open letter read.

"We expected this to be an uncontroversial request since Shoreline's own court proceedings seek to confirm the cancellation of their purchase agreement.

"We needed their written confirmation as to ownership because, without it, we could not be confident that our takeover of the club would be free from dispute.

"Unfortunately, even though Shoreline's own legal case before the court asserts that they do not wish to own the club, Shoreline has refused to provide us with the written confirmation we have sought.

"This extremely frustrating situation is compounded by the fact that Shoreline are currently in the process of seeking to acquire another football club that are in the EFL.

"Regulations forbid any owner to take control of more than one English football club.

"Therefore, clarifying the ownership of Gateshead FC would not only clear the way for our rescue of the club; it would also clear the way for the Shoreline to acquire their other chosen club."

Gateshead have had a difficult season so far, on and off the field, and this will prove to be further bad news to already worried supporters.

The Heed have picked up just four points from their 14 National League games so far, losing each of their last eight league games, and are already 11 points adrift of safety.

They are still without a manager, having sacked Lee Cattermole at the beginning of the month, and staff and players had their wages paid late for the month of September.

Flacks Group concluded it is currently unable to proceed with the takeover in the circumstances and expects it will "reluctantly have to withdraw from the purchase" as it cannot acquire the club.

It added this is "not something we wish to do" and noted it was fully engaging with the IFR in the hope of achieving "a successful outcome for the club" as the group "seeks a resolution with Shoreline."