Flacks Group said its proposed takeover of Gateshead is close to collapsing because of third-party involvement. The deal had looked close to being completed, subject to approval by the Independent Football Regulator.
Flacks Group sets out the obstacle
In an open letter, the prospective owners said the deal is in serious jeopardy after they were informed another party had agreed to buy the club from the current owners last March. Flacks Group said Shoreline Limited attempted to purchase the club but filed court documentation four months later to confirm that its agreement was null and void, after which the group entered negotiations with the current ownership.
Flacks Group said in the open letter: "We needed Shoreline to confirm in writing that it would give up any ownership claim it might have over Gateshead FC."
Flacks Group said in the open letter: "We expected this to be an uncontroversial request since Shoreline's own court proceedings seek to confirm the cancellation of their purchase agreement."
Claims about Shoreline
Flacks Group said Shoreline has refused to respond to its inquiry over Shoreline's alleged involvement with Gateshead. Flacks Group said in the open letter: "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."
Flacks Group said in the open letter: "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."
Flacks Group alleged that Shoreline are interested in buying an EFL club. Flacks Group said in the open letter: "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."
Flacks Group said in the open letter: "Regulations forbid any owner to take control of more than one English football club."
Flacks Group said in the open letter: "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."
What Flacks Group said next
Flacks Group said it is currently unable to proceed with the takeover in the circumstances and expects it will "reluctantly have to withdraw from the purchase" because it cannot acquire the club. The group also said it was fully engaging with the IFR in the hope of achieving "a successful outcome for the club" as it "seeks a resolution with Shoreline."
Gateshead's position
Gateshead have picked up four points from 14 National League games so far and have lost each of their last eight league games. They are 11 points adrift of safety, are without a manager after sacking Lee Cattermole at the beginning of the month, and staff and players had their wages paid late for September.
