WRU set to take over Newport Gwent Dragons
The Welsh Rugby Union have reached a ‘heads of terms’ agreement with Newport Gwent Dragons as they inch closer to assuming full ownership and control of the region.
The WRU announced on Wednesday that they would take control of the Dragons, in a capacity both on and off the pitch, as well as purchasing Rodney Parade and clearing the region of all historic debts.
The targeted completion date for the takeover is July 1 with all employees moving to a new company, free of debt, which would act as a subsidiary of the WRU.
Martyn Phillips, the chief executive of the WRU Group, insisted the move was a rugby decision made in
the interest of safeguarding the sport in the Gwent area.
He said: “All parties recognise that from an NGD perspective significant improvement is required on and off the pitch, and that it is now time to take a different approach.
“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.”
Phillips did however admit the Dragons, who recently signed former Wales and Lions star Gavin Henson on a two-year deal, were struggling to such an extent that the WRU had to intervene.
He also promised the WRU would invest in improving Rodney Parade’s pitch, as well as the infrastructure around the region.
"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.
“Initially we will focus on consolidating a high performance environment for the players and on ensuring high quality coaching.”