Gateshead expect overdue wages by Tuesday as Flacks Group takeover advances

Gateshead expect to pay overdue September wages to players and staff by Tuesday as the National League club works towards a takeover by American investment company Flacks Group. BBC Sport reported that interim chairman Graham Wood had given the payment timetable while the club awaited money from the United States. The wages had not yet been confirmed as paid.

In a club statement published on October 11, Wood traced the funding problems to Mark Nellist's decision on September 29 to resign from the board and withdraw financial support. Nellist transferred his majority shareholding to Stephen Paylor the following day. Wood said Nellist later offered to resume funding, subject to several shareholders returning their stakes to him.

Talks with Flacks Group subsequently produced an alternative proposal. Wood said the prospective investor sought approximately 90% of Gateshead's shares at no cost, with the relevant shareholders agreeing to donate their holdings. The proposed transaction would leave outside that transfer the supporters' society's roughly 8% stake and around 2% held collectively by longstanding small shareholders.

Wood described a two-stage arrangement: a loan to meet overdue wages, followed by due diligence aimed at completing the takeover by the following Friday. Further funding for outstanding debts and working capital would follow completion. Loan and exclusivity documents were signed, he said, and wage funding was released, but international banking procedures delayed its arrival. Tuesday was the expected payment deadline, not confirmation of a completed takeover.

The financial uncertainty comes alongside a difficult league campaign. According to BBC Sport, Gateshead remain bottom of the National League after a 4-1 defeat at Halifax Town. That result was their 11th loss in 13 league matches this season, leaving them with four points from a possible 33 and still without a manager.

Lee Cattermole was dismissed earlier this month after four months in charge. The BBC reported that his 14-match tenure produced one win and 11 defeats. Against that sporting backdrop, Wood's update sets out the expected sequence for settling wages and securing new investment, with the transfer of funds and completion of the ownership deal still separate steps.