Flacks Group has warned it might walk away from its proposed buyout of Gateshead because of an unresolved ownership dispute involving Shoreline Sports Limited. The American investment group says it cannot move forward with the purchase while questions remain over an earlier deal involving Shoreline.
In an open letter published on Gateshead’s official website on 29 October, Flacks Group said it may have to withdraw unless the dispute is settled. Gateshead had previously announced on 9 October that an agreement in principle was in place for Flacks Group to buy the club. That deal still needs approval from the Independent Football Regulator, known as the IFR.
Gateshead have not said that the takeover has collapsed. While the agreement in principle stands, Flacks Group insists it cannot complete the buyout until the ownership situation is cleared up.
Earlier agreement creates uncertainty
According to Flacks Group, checks into the club’s finances and legal standing uncovered an earlier agreement to buy Gateshead, which Shoreline Sports Limited signed on 26 March 2025. The investment group says Shoreline later sent a notice intended to cancel that deal and started court action on 28 July 2025.
In its letter, Flacks Group explained that the court case aims to confirm the March purchase agreement is null and void. Shoreline is also seeking money from the shareholders involved in that proposed sale. Flacks Group noted that this legal action is directed at the shareholders rather than Gateshead Football Club itself.
To protect its position, Flacks Group said it asked Shoreline for written confirmation that it had dropped any claim to own the club. According to Flacks Group, Shoreline declined to give that guarantee. This leaves the prospective buyers unsure whether they can take over without facing a future battle over who owns the club.
The details about Shoreline’s position come solely from the letter written by Flacks Group. None of the statements published by Gateshead included a response from Shoreline.
Financial strain and player response
Despite the holdup, Flacks Group said it stays in regular contact with the IFR and still wants to buy Gateshead. The group said it is willing to provide more money to pay off waiting creditors and cover the club’s next wage bill, though it repeated its warning that it might pull out if the ownership problem drags on.
The current uncertainty follows a difficult few weeks at Gateshead. After September wages were delayed, the club confirmed on 13 October that September wages had been paid. Flacks Group said it supplied the funds to cover that payroll.
Gateshead’s players stepped into the public discussion on 30 October by releasing a statement of their own. The squad expressed disappointment over the hurdles delaying the buyout and said they hoped a solution would allow Flacks Group to complete the takeover.
After meeting with representatives from the American group, the players said they felt optimistic about Gateshead’s future under the prospective new owners. They called on the previous shareholders and Shoreline to settle their differences for the good of the club and the local area.
The off-field problems have coincided with changes in the dugout. On 4 October, Gateshead terminated Lee Cattermole’s contract as first-team manager and placed Ben Clark in charge as caretaker manager.
