Alexandre Pato involved in deal to buy Cobblers stake - what's the latest?

The deal, which was first announced back in April, has been agreed and is waiting for sign off from the EFL and Independent Football Regulator (IFR). The club hope to get EFL approval next week but the IFR process may take longer.

Here’s a complete overview of the current situation...

Who is Alexandre Pato?

Up until now, the club have kept their cards close to their chest as i’s are dotted and t’s are crossed. While a deal has essentially been agreed between all parties, the incoming investors need to be approved by both the EFL and the Independent Football Regulator (IFR) and those processes remain ongoing.

But that won’t stop rumours circling and speculation intensifying, especially when a former AC Milan and Chelsea forward who played 27 times for Brazil made the seemingly random decision to follow the club on social media.

Alexandre Pato, who scored 10 times for his country and also played for Corinthians, São Paulo and Orlando City before retiring aged 33 in 2023, recently followed Northampton on Instagram, sparking strong suggestions he is involved in the deal. His consortium have already tried to buy one EFL club this year.

Where we are

It was back in April when the club announced they had entered a ‘period of exclusivity’ with a ‘well-funded, football-focused’ but unnamed investment group. A ‘Letter of Intent’ was signed followed by a period for formal due diligence to take place. Chairman Kelvin Thomas has issued several updates since, confirming the process is on track but admitting timings are out of his hands. The proposed investors were at Sixfields for the pre-season game against Coventry City.

Why is it taking so long?

Cobblers are one of the first clubs to have to go through the new process set up by the IFR for incoming investors into English clubs. The EFL have also made their process more rigorous following problems at multiple clubs in recent years, not least Sheffield Wednesday, Wigan Athletic and Reading.

Following a fan-led review, the IFR was created to protect the financial stability of English football and stop reckless club ownership. It is no doubt a good thing for the game but it does mean more red tape and a more thorough process.

For context, Derby County announced a similar deal with Saudi Arabia’s Turki Alalshikh in May and that too remains ongoing. However, the BBC did report last week that an announcement was thought to be imminent.

Who are the people involved - and is Pato among them?

Yes. The club have given very little away since the original announcement, which is not unusual in the circumstances, but it does create a vacuum of information and therefore room for people to speculate. The reason Pato’s social media activity has gained such traction is because he has already tried to buy an EFL club this year.

Back in January, investment consortium Sports Alpha Capital (SAC), managed by Brazilian businessman Joao Xavier and featuring Pato as a high-profile figurehead, were in talks to buy League Two Colchester United.

Pato attended a Colchester game in January before the consortium withdraw from talks a month later. In a joint statement, both parties said: "Aspire Media Group has decided not to proceed with the proposed acquisition of Colchester United by Sports Alpha Capital (SAC), the investment consortium managed by Joao Xavier and including Alexandre Pato. Accordingly, discussions have concluded.”

Following the collapse of the deal, Sports Alpha Capital said they were actively exploring other investment opportunities within English football - and it turns out trying to buy a stake in the Cobblers was their next move.

When might we get an answer?

It is thought EFL approval is close and IFR approval should not be far behind. Thomas has stated several times that he thought it would be completed before the start of the new season but he also stressed that he was not in control of timings. Given Derby are thought to be on the verge of completing their deal, you’d have thought an announcement won’t be too far away.

What happens next?

The exact details and plans of Pato’s investment group are not known but Thomas has previously said these are ‘serious, football-focused’ people, and also that the club will be debt-free and in a better position to compete in the current financial landscape. If it is completed by the start of the league season, as Thomas is hoping, there would still be two weeks of the window left and there’s every chance the new investors would want to make an early statement, though they could also take the slow and steady approach and not rush into things.

Will Thomas remain involved?

Yes. He confirmed he plans to stay involved in some capacity shortly after the talks were announced, though it remains to be seen what role he has. Fellow co-owners David Bower and Nigel Le Quesne are also expected to continue their involvement but again nothing is set in stone until the deal is officinally ratified and signed off.