Gateshead expect overdue September wages after investor loan

WHAT HAPPENED
Gateshead interim chairman Graham Wood says he expects the club’s overdue September wages to be paid on Tuesday. The statement follows an agreement in principle with American investment company Flacks Group for them to take over the running of the club.

HOW THE PAYMENT ARRANGED
Wood said a deal was struck on Thursday under which the prospective new owners would provide an immediate loan so overdue wages could be paid, with due diligence and an exclusivity agreement to follow. Those steps were completed and funding was released on Friday, but, Wood added, because the new owners are based in the USA "the money could not immediately transfer and was instead expected to arrive by Tuesday at the latest."

CLUB SITUATION
Players and staff have not been paid for September amid the search for new investment. On the field, Gateshead sit bottom of the National League after a 4-1 defeat at Halifax Town — their 11th loss in 13 league games this season. The club is also without a manager after Lee Cattermole was sacked earlier this month; he had been in charge for four months, recording one win and 11 defeats across 14 matches.

WHAT HAPPENS NEXT
The immediate development to watch is the expected arrival of funds by Tuesday, which the club says will be used to clear the overdue wages. Further steps in the takeover process would depend on the outcome of due diligence and the exclusivity agreement already signed.