Gateshead FC agree takeover deal with US billionaire investor

Gateshead have reached an agreement in principle to sell the club to American-based private investment company Flacks Group, with players and staff set to receive their unpaid wages immediately.

The proposed deal is subject to approval from the Independent Football Regulator (IFR) and comes after a turbulent period at the International Stadium, which has seen major shareholder Mark Nellist step down, September wages not paid and manager Lee Cattermole leave the club.

The agreement offers a potential way forward for Gateshead after weeks of uncertainty over the club’s finances, with the immediate focus on resolving the outstanding wage payments.

Minority shareholder Stephen Paylor thanked the potential new owners for acting quickly to help the National League club through a difficult period.

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New investment

“I am thrilled to be able to announce an agreement in principle with the American-based and globally active Flacks Group, which has a global asset value exceeding $7 billion,” he said.

“Player and staff wages will be paid immediately and bring to an end what has been an incredibly challenging period over the past 10 days.

“I wanted to give my personal thanks to Michael Flacks, Phil Forster and the wider Flacks team for acting quickly and in the best interests of a club that for me and many others represents much more than just a football club.”

Flacks Group is a private family office specialising in the acquisition and operational turnaround of medium to large-sized businesses facing complex situations where a rapid solution is critical.

Founded in 1983, the group has global assets valued at more than $7 billion. Michael Flacks, who was born in Manchester, is the figure behind the American-based investment company.

Phil Forster, a spokesperson for Flacks Group, welcomed the proposed acquisition and said the group was looking forward to helping the club progress.

“We are delighted to welcome Gateshead Football Club as the latest acquisition at Flacks Group,” he said.

“Gateshead FC has a tremendous history and we look forward to moving the club forward and to see it realise its true potential.”

Looking ahead

This surprise development comes after Nellist, who had provided substantial financial backing since the club was rescued in 2019, resigned as a director last week and withdrew his funding support.

He subsequently sought to relinquish his majority ownership, reaching an agreement to transfer his shares to Paylor, subject to regulatory approval.

However, Paylor revealed he was unable to provide funding alone, while a third party that had initially expressed strong interest had become less involved.

With players and staff unpaid, Gateshead appealed to shareholders for support while seeking fresh investment – before reaching the agreement in principle with Flacks Group.

Interim chairman Graham Wood welcomed the proposed takeover and thanked Flacks Group for its confidence in the club’s future.

“I share Stephen’s pleasure in announcing this agreement and thank Phil and his colleagues at Flacks Group for their belief in the future of the club,” he said.

“I also wish to thank the players and staff for their patience and understanding during this most stressful period.

“We now look forward to the task of returning the club to winning ways.”

Encouragement

The potential sale comes as Gateshead attempt to recover on the pitch following a difficult start to their National League campaign.

The Tynesiders sit bottom of the table with four points from their opening 12 games, having managed just one win and one draw.

Cattermole and assistant Martin Smith departed last weekend following the poor start to this season.

Caretaker Ben Clark will take charge for Saturday’s trip to FC Halifax Town, with the Heed aiming to avoid a seventh consecutive defeat.

However, should the sale go through, it would provide a much-needed boost for Gateshead supporters and the wider community.

READ MORE: Gateshead part company with Lee Cattermole and issue support plea