Newcastle, which has a market value of £81m, is now the second Premiership club that is in active bid talks. Last week the American billionaire Randy Lerner tabled an offer to buy Aston Villa.

Belgravia, which runs a range of investments from property to equity and derivative funds, is headed by two experienced fund managers, Ron Mitchell and Duncan Hickman. They manage more than £1 billion for wealthy investors and made their fortune building and later selling a hedge-fund business called Liberty Ermitage.

A spokesman for Belgravia described the potential acquisition of Newcastle as “an attractive opportunity” but added: “It is at an early stage and nothing is finalised.” The group is being advised in the deal by Strand Partners, a boutique London investment bank.

It is understood that Mitchell and Hickman have held extensive talks with Sir John Hall, the northeast entrepreneur, who controls 28.8% of the quoted club. His son Douglas owns an additional 12% of the company and it is thought that if his father sells he is likely to as well.

Hall, who unlike his son is no longer on the board of Newcastle, has been offered the role of life president if the club is taken over. Belgravia also intends to offer Alan Shearer, the side’s former captain and striker, a role in the club.

As part of its takeover plans, Belgravia has set aside a pool of money to buy in more football talent and show the Toon army that it is a long-term owner that wants to build on the club’s success.

Belgravia, which Hickman chairs, intends to buy out the 28% stake held by Newcastle’s chairman, Freddy Shepherd. This could prove the sticking point, because up to now Shepherd has resisted approaches to sell out and has instead been increasing his stake.

The Jersey company is sitting on a huge cash pile and the equity required to finance the takeover will not be taken from its funds under management.

This is the second approach Hall has had for his stake. Two months ago The Sunday Times revealed that Polygon, a US hedge fund, had held talks with Hall. Polygon has been working with UBS, the investment bank, on a potential takeover and it, too, wants complete control of the club. But it is thought Polygon’s interest has waned.

Despite the financial risk attached to owning a football club, there appears to be no shortage of people wanting to take on the challenge. The Glazer family now controls Manchester United and the Russians Roman Abramovich and Alexandre Gaydamak own Chelsea and Portsmouth.

Now there is speculation that a Korean investor could buy the Premiership newcomer Reading from John Madejski.

According to its last full-year accounts, Newcastle reported sales of £87m and a drop in its cash position from £26.2m to £17.6m. Analysts say an offer to acquire the company is likely to be at a 10% to 15% premium to Friday’s closing price of 61p a share.

For Hall Sr, his decision to sell his Newcastle stake marks the end of a broken dream. He made his fortune after developing the Metro Centre, the huge retail complex on the outskirts of Gateshead. He banked £70m when the centre was sold and then embarked on a grandiose campaign to turn Newcastle into the “European city of sporting culture”.

He bought the football club and then spent millions of pounds adding rugby, basketball and ice-hockey teams. But Hall’s vision hit the buffers and he lost millions of pounds.

He is still held in high esteem by the local community, although they are less affectionate towards his son.

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