PMG pulls out of KV Oostende acquisition

March 20 – American investment company Pacific Media Group (PMG) has pulled out of a deal to acquire a majority stake in struggling Belgian top-flight club KV Oostende.

After months of negotiations, PMG had reportedly procured 70% of the stakes in the seaside club and would immediately inject €2.7 million in the cash-strapped Belgian club. The investment group also has stakes in Swiss side FC Thun and Barnsley.

But that deal is now off, according to KV Oostende. PMG failed to reach an agreement with investment firm Alychlo over the club’s current debt. The news is a severe blow to Oostende, a club that has been struggling to keep afloat.

In 2017, former owner Marc Coucke left Oostende for Anderlecht and ever since the club has been struggling financially, owing Coucke €6.2 million, labouring under a skewed salary structure, stadium rent, and an operational deficit of €9.6 million in the 2018-2019 season.

On the field Oostende were entangled in a relegation battle before the Belgian league was suspended with one match day remaining on the calendar.

“We work diligently and passionately to ensure the financial future of the club and ultimately to obtain our license,” said KV Oostende president Frank Dierckens. “We have to do that for all employees, supporters, sponsors and our 600 youth players.”

Contact the writer of this story, Samindra Kunti, at moc.l1586312070labto1586312070ofdlr1586312070owedi1586312070sni@o1586312070fni1586312070