Flacks Group reached an agreement in principle to acquire the National League club earlier in October, subject to approval from the Independent Football Regulator. However, its due diligence uncovered an earlier agreement involving Shoreline Sports Limited, which had signed a deal to buy Gateshead on 26 March 2025.
Shoreline subsequently served notice purporting to terminate that agreement and began court proceedings in July 2025, seeking confirmation that the purchase agreement was null and void. The proceedings also seek financial sums from the shareholders involved in the proposed sale, rather than from Gateshead itself.
Flacks Group says it asked Shoreline to confirm in writing that it had no remaining ownership claim over the club. The American group stressed that it was not asking Shoreline to abandon its financial claims against the former shareholders, but said it needed certainty that its own acquisition would not be subject to a competing ownership claim.
Shoreline has declined to provide the requested confirmation, according to Flacks Group.
The issue has become more complicated because Flacks Group says Shoreline is also seeking to acquire another club in the English Football League. It has raised concerns with the EFL and the Independent Football Regulator, arguing that the ownership position at Gateshead needs to be clarified before the other proposed acquisition can proceed.
Flacks Group said it was no longer able to progress its takeover while the uncertainty remained and warned that it expected to withdraw unless the situation changed. The group also said it remained in contact with the regulator and was prepared to provide further funding to meet outstanding creditor commitments and the next round of player and staff wages.
Flacks Group said it had already provided funding to ensure September wages were paid as part of its commitment to the proposed purchase.
The club’s players issued their own statement on Friday, expressing disappointment that the deal had encountered further difficulties and calling for the dispute to be settled.
“We would hope that a resolution that enables them to takeover the club is found,” they said, adding that they had met Flacks Group representatives and were optimistic about the club’s future under the proposed ownership.
They said the uncertainty was once again leaving players and supporters to bear the consequences.
“We urge the club’s previous shareholders and Shoreline to settle their dispute for the benefit of Gateshead Football Club and the wider region.”
Gateshead’s problems extend beyond the ownership situation. The club had collected only four points from its first 14 National League matches and sat bottom of the table, while also suffering an FA Cup qualifying defeat to Stafford Rangers. The proposed takeover remains subject to a resolution between the parties and regulatory approval.