Wales Deals Stephen Farrell

The takeover of Newport Gwent Dragons by the Welsh Rugby Union (WRU) can go ahead after a £3.75m deal was approved at a vote this week (9 May 2017).

The WRU, which currently owns a 50 per cent stake in the Dragons, will assume control of the club, and the Rodney Parade ground, from 1 July.

The deal had previously been ratified by the boards of the WRU, Newport RFC and the Dragons, but was conditional on the support of 75 per cent of Newport RFC shareholders.

At an extraordinary general meeting at the ground, 81 per cent of shareholders voted in favour of the takeover.

Current Newport Gwent Dragons chairman Martyn Hazell, alongside fellow principal benefactor Tony Brown, will write off £4.4m in debt as part of the agreement. Neither wishes to be considered for a place on the reconstituted boards.

Rodney Parade staff will transfer to the WRU on 1 of July with a new subsidiary company set to be formed to run the club.

Stuart Davies, Newport Gwent Dragons and Newport RFC chief executive, said: "This is a huge moment in the history of Newport Gwent Dragons. The decision is the result of two years of hard work and we must express our gratitude to everyone involved in the process.

"We now look forward to a bright future for the Dragons, as well as Newport RFC, and the continuation of rugby at this historic venue.

"This was an incredibly complex take-over. It was important to explain to shareholders and supporters the intricacies of the deal, and to outline the extent of the debt as a driving factor. There was also a need to give as much detail as possible around our vision for Rodney Parade under the WRU's ownership."

WRU chairman Martyn Phillips added: "This is an important day not just for rugby in Gwent, but for Welsh Rugby and we will be doing everything possible to ensure the long term success of the Dragons, but the hard work starts now. All parties recognise that from a Dragons perspective significant improvement is required on and off the pitch and that now is the time for a new approach.

"Our investment is equally designed to safeguard Newport RFC and its rich history at Rodney Parade."

The BBC has also reported that Cardiff Blues are in talks with the WRU over a temporary takeover. The governing body would assume responsibility for the club while a renovation of Cardiff Arms Park takes place.