Flacks Group warns Gateshead takeover could collapse over ownership dispute

Flacks Group has warned that its proposed takeover of Gateshead could fall through because it has been unable to resolve questions about a possible ownership claim involving Shoreline Limited. According to BBC Sport, the prospective buyer says it cannot proceed in the current circumstances and expects it may have to withdraw, although efforts to reach a resolution are continuing.

In an open letter reported by the BBC, Flacks Group said it had asked Shoreline to confirm in writing that it would relinquish any ownership claim over Gateshead. The group said this assurance was necessary to establish that its purchase would not subsequently face a dispute. It alleged that Shoreline had refused to provide the requested confirmation.

Flacks Group argued that the request should have been straightforward because, in its account, Shoreline's own court proceedings seek confirmation that its purchase agreement has been cancelled. That description of the legal position comes from the prospective buyer. The unresolved issue identified in its letter is whether any claim to ownership could remain an obstacle to completing the takeover.

The group also alleged that Shoreline was pursuing the acquisition of an English Football League club. In its letter, Flacks Group argued that restrictions on controlling more than one English club made clarity over Gateshead's ownership important to both proposed transactions. Those statements were presented by the BBC as Flacks Group's claims, rather than confirmation that another acquisition had been completed.

The uncertainty comes amid serious difficulties for Gateshead on the pitch and behind the scenes. BBC Sport reported that the club had collected four points from 14 National League matches, lost its last eight league games and fallen 11 points behind safety. Gateshead remained without a manager after dismissing Lee Cattermole at the start of the month, while September wages for players and staff were paid late.

Despite the warning, Flacks Group said withdrawal was not its preferred outcome. It said it was continuing to engage with the Independent Football Regulator while seeking a resolution with Shoreline. The position set out in the letter therefore leaves the proposed purchase in doubt, rather than confirming that the takeover attempt has ended.