Gateshead FC have agreed a takeover deal with American-based private investment company Flacks Group, pending approval from the Independent Football Regulator.
Billionaire Michael Flacks, who was born in Manchester, England, started Flacks Group in 1983. The company is a private family office specialising in the acquisition and operational turnaround of medium to large-sized businesses in complex situations where a rapid solution is critical.
Major development for crisis-hit Heed
It is a major development with the Heed fighting for their life at the bottom of the National League. Chronicle Live exclusively revealed that players and staff at the club had not been paid their September pay packet on time, which was due on the final day of the working month, and they were still yet to receive those wages.
The departure of key financial backer Mark Nellist left the Tynesiders facing an uncertain future, with players holding an emergency meeting before last weekend's clash with Worthing to discuss potential avenues.
Club bottom of National League
The Heed find themselves rock-bottom of the National League having taken just four points from their opening 12 games and parted company with manager Lee Cattermole last week following a bombshell interview, which proved to be his last act in charge of the club.
Stephen Paylor, of Gateshead Football Club, 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 welcome acquisition
Phil Forster, spokesperson for Flacks Group, added: "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."
Speaking to club media today ahead of the takeover announcement, Clark said: "The lads have been different class, obviously they're aware of the situation. We still haven't been paid as of now. So we're just trying to reassure them that things are going on in the background.
"Everyone is working hard in the background to try and get something sorted. There's lots going on, so we're having daily conversations with management and the chairman to try and get something sorted. The lads have been different class, they've come in and worked really hard.
"We're looking forward to the game and they want to try and get some results."
This is a breaking news story and further developments are expected.
