Gateshead agrees Flacks Group sale after wage crisis
Gateshead have agreed a sale in principle to US-based Flacks Group, with immediate wage payments promised following a funding crisis and completion subject to Independent Football Regulator approval.
Gateshead have reached an agreement in principle to sell the club to Flacks Group, bringing forward a proposed ownership solution after delayed September wages raised concerns about their immediate financial position.The National League club confirmed that the transaction remains subject to Independent Football Regulator approval, while shareholder Stephen Paylor said players and staff would be paid immediately following a difficult 10-day period.Paylor said: “I am thrilled to be able to announce an agreement in principle with the American based and globally active Flacks Group, who has a global asset value exceeding $7 billion.“Player and staff wages will be paid immediately and bring to an end what has been an incredibly challenging period over the past 10 days. I wanted to give my personal thanks to Michael Flacks, Phil Forster and the wider Flacks team for acting quickly and in the best interests of a club that for me and many others represents much more than just a football club.”Flacks Group is a private family office specialising in acquiring and turning around medium-sized and large businesses in complex situations, where companies require a rapid operational or financial solution.Founded in 1983 by Manchester-born Michael Flacks, the group has offices in Miami, New York, Houston, Tokyo and Paris, with its involvement offering Gateshead a prospective new source of ownership support.The agreement followed discussions with two interested parties, although the announcement establishes a proposed sale rather than a completed change of control.Flacks Group spokesperson Phil Forster commented: “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.”The wage crisis followed the withdrawal of support from co-owner Mark Nellist last month, when he expressed dissatisfaction with the direction of the club, leaving Gateshead unable to make their September payments on time.Paylor had agreed to become a co-owner alongside Nellist in April, making the proposed Flacks transaction another ownership change within a short period as the club seeks a more secure financial footing.Immediate payment of outstanding wages would address the most pressing obligation to employees, while regulatory approval remains a condition of completing the wider transaction.Interim chairman Graham Wood added: “I share Stephen’s pleasure in announcing this agreement and thank Phil and his colleagues at Flacks Group for their belief in the future of the club.“I also 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.”The proposed acquisition places Gateshead within the investment group’s turnaround strategy, with the initial priority being to resolve unpaid wages and progress the ownership process through the required approval stage.