Welsh Rugby Union reaches agreement to take over Newport Gwent Dragons

The Welsh Rugby Union (WRU) is set to assume ownership and control of the Newport Gwent Dragons, and their stadium Rodney Parade, after reaching a 'heads of terms' agreement.

The WRU announced on Wednesday that the region would be under its control, both on and off the field, and that the proposal would see it purchase Rodney Parade, with a targeted completion date of July 1.

Employees would transfer from the region to the WRU and a new company, a subsidiary of the WRU, would be formed, free of any historic debt.

WRU Group chief executive Martyn Phillips says the investment is about safeguarding the future of rugby in the region.

"All parties recognise that from a Newport Gwent Dragons (NGD) perspective significant improvement is required on and off the pitch, and that it is now time to take a different approach," said Phillips.

"This investment is equally designed to safeguard Newport RFC and its rich history at Rodney Parade and provides a long-term programme where we focus on putting in solid foundations to ensure a sustainable and successful team in the region.

"Without this action the future of both the NGD and Newport RFC is at best uncertain, along with the existence of Rodney Parade.

"There is still a lot of hard work to be completed before the proposed transaction proceeds, but it is important to recognise that there will be no magic wand.

"We have put together the very best package we can for rugby in Gwent, but there is clearly still work to be done and there is an ongoing process of due diligence to be followed in order to achieve the best outcome for Welsh Rugby.

"We are not where we want to be with NGD, but it is inconceivable to us that professional rugby in that area could be lost and so we have committed to doing everything possible to ensure its future success.

"A WRU working party will be engaged as soon possible, to consider all of the issues raised and to provide a clear way forward in the long term."

The Dragons have struggled in the PRO12 in recent years, finishing in the bottom four for the last four consecutive seasons, some way behind each of Wales' other regions the Ospreys, Scarlets and Cardiff Blues.

They have also been under severe financial strain and the WRU's proposal will aim to make the Dragons a competitive force in the division again.

"This is a significant step forwards for us, and having explored all options the WRU proposal is an extremely welcome and exciting one for regional rugby in Gwent," NGD chief executive Stuart Davies said.

"We began work just under two years ago to establish the Newport Gwent Dragons as an independent entity capable of attracting fresh investment. Separation from Newport RFC was an important step in achieving that, but the proposal also seeks to protect their interests and the continued playing of rugby at Rodney Parade.

"There is further hard work ahead, but this could be a historic moment for Newport Gwent Dragons supporters."

Professional Rugby Wales chief executive Mark Davies added: "We all believe the continuity of professional rugby in Gwent is critical for Welsh Rugby in the long-term and fully understand the urgency of the current situation at the Dragons.

"We therefore welcome a practical solution that will provide and support that continuity with immediate effect in an increasingly competitive and fast-paced professional game."

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