The club was formed by Kath Hetherington and Shane Richardson at an initial cost of £500,000 with sponsors Northern Electric & Gas reportedly investing a similar amount "over three years.

After selling her shares in Sheffield Eagles in 1996, Hetherington invested in the new club citing the potential for rugby league expansion in the North East.

In 1998, Gateshead was officially granted a franchise in the Super League ahead of bids from Swansea, Northampton, and Cardiff.

They had defeated St. Helens home and away, as well as beating Wigan Warriors in the 'on the road' fixture at Tynecastle, Edinburgh.

Although this ultimately proved to be unsuccessful, the degree of local fan support resulted in the formation of a new Gateshead Thunder club.