Northampton Town has confirmed an agreement with a consortium that includes former AC Milan, Chelsea, and Brazil forward Alexandre Pato, regarding a "proposed shareholding acquisition" in the League Two club.
Sports Alpha Capital (SAC), the consortium, had its proposed deal with the Cobblers approved by the Independent Football Regulator (IFR) and English Football League (EFL) earlier this month. The club stated it expects to be "in a position to confirm completion of the process" next week.
Joao Xavier, a founding partner at Sports Alpha Capital, commented that obtaining IFR and EFL approvals was a significant step, and reaching formal agreements is also a very important milestone. SAC names Pato, who retired from playing last year at 37, and London-based investment management firm Gemcorp Capital as investors. The size of SAC's proposed shareholding has not been disclosed.
The agreement follows a challenging period for the League Two side, which suffered relegation last season and recorded a pre-tax loss of just under £3m in April. Chairman Kelvin Thomas previously indicated that the proposed investment would make the club debt-free.