The Welsh Rugby Union has moved a step closer to assuming ownership and control of the Newport Gwent Dragons after reaching '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. The targeted completion date is 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 Gwent.
Phillips 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."
Source: PA
