Flacks Group clears Gateshead takeover obstacles but awaits regulatory approval

Flacks Group says it has completed its checks on Gateshead and resolved the concerns holding up its proposed takeover, although the deal remains subject to approval from the Independent Football Regulator. The Non-League Football Paper reported the development on Thursday, citing a statement from group spokesman Phil Forster released to Chronicle Live.

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Forster said the issues identified during due diligence had been addressed to the group's satisfaction and thanked previous shareholders for their cooperation. He said Flacks would continue working with the regulator to secure approval and full ownership. The group also called for supporters to rally behind the players and staff while that final stage proceeds.

The announcement follows a warning from Flacks on October 29 that it might have to abandon the purchase. In an open letter published on Gateshead's website, the group said its review had uncovered an earlier purchase agreement involving Shoreline Sports Limited. Flacks said it needed written confirmation that Shoreline would relinquish any ownership claim, while making clear it was not asking Shoreline to withdraw separate financial claims against shareholders.

That letter also said Flacks had funded September wages and was ready to provide further money for creditors and subsequent wage payments. The ownership uncertainty was preventing it from proceeding at that point. The latest statement therefore changes the position set out a week earlier, but its explicit condition of regulatory approval means the acquisition should not yet be treated as unconditional.

BBC Sport's reporting on Thursday illustrated the pressure surrounding the negotiations. Gateshead were bottom of the National League with four points from 15 matches after nine successive league defeats. The BBC said wages had been delayed following Mark Nellist's withdrawal of financial support in September, and reported that the club was believed to owe more than £200,000 to HMRC.

Local MP Mark Ferguson spoke to the regulator on Wednesday, according to the BBC, as supporters voiced fears for the club's survival. Financial difficulties have also coincided with a shortage of home fixtures: Gateshead had not hosted a league match since October 3, while a rearranged meeting with Tamworth was postponed because of other events at the International Stadium.