In 2007 Blue Star left the Northern League and with the backing of Newcastle Falcons Chairman David Thompson the club gave up their lease on the Wheatsheaf Ground (now Druid Park) and moved to Kingston Park Stadium where they were taken under the wing of the Falcons. The committee no longer ran the club and David Thompson became the sole benefactor.

Problems at Blue Star first began to appear in March 2008 when the club announced that they would be quitting the Unibond League after one season and returning to the Northern league. Days later the club rescinded this statement and declared they would continue. This wasn’t enough to pursuade manager Tommy Cassidy to stay and he quit the club due to differences with the club management.

After a succesfull 2008/09 season in which Star were succesful on the pitch and only marginally failed to make the first round proper of the FA Cup cracks once again appeared…this time on the pitch. Numerous postponments and pitch problems meant fixtures built towards the end of the season and 3 games a week was not uncommon. At this time rumours started within the club rearding the repayment of £60k which had be obtained from the Football Foundation towards improvements at the former Wheatsheaf Ground. In addition 10k was owed to Workington FC for former manager Tommidy Cassidy. It became apparent that the costs of running the club and the repayment of the debts were to prove to much for the club and with Chairman David Thompson withdrawing his backing to the club and no investment coming forward the club folded on 23rd June 2009.

Despite promotion to the Unibond premier League, a new and increasing supporter base and unprecedented local press attention the club no longer existed leaving many supporters old and new in a state of shock.