Gateshead Football Club has agreed to be sold to Flacks Group, an American private investment company that specialises in purchasing distressed companies and assets. The sale is subject to approval by the Independent Football Regulator.
Flacks Group was initially set up by Manchester-born billionaire Michael Flacks. The firm's spokesperson Phil Forster said: "We are delighted to welcome Gateshead Football Club as the latest acquisition at Flacks Group. Gateshead FC has a tremendous history and we look forward to moving the club forward and to see it realise its true potential."
Financial Crisis and Wage Arrears
The proposed deal will ensure Gateshead's players and staff are paid immediately following delays to September wage payments. This comes after co-owner Mark Nellist withdrew his support for the club last month, stating he did not like the direction in which it was heading. Without Nellist's backing, wages went unpaid.
In April, US-based businessman Stephen Paylor agreed to become a co-owner alongside Nellist, but the partnership has since collapsed.
On-Field Struggles
Gateshead are currently bottom of the National League with four points from 12 games. The club are without a head coach after Lee Cattermole was sacked on Sunday, with Ben Clark in interim charge for the trip to Halifax Town on Saturday (15:00 BST). The team has suffered six consecutive defeats.
Last season, the club needed a dramatic run of 31 points from 15 games to avoid relegation. Rob Elliot left for Carlisle United after that season, and his replacement Cattermole struggled for results amid turbulence off the pitch.
Interim chairman Graham Wood said: "I 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."