Gwent Rugby Ltd, the company running the Gwent Dragons have passed into the hands of the adminstrator - six months after coming into existence.
With projected losses for its first season as one of the five flagship new regional entities created by the Welsh Rugby Union set to run to almost Â£1 million, the directors decided to take prompt action to arrest the off-the-field slide.
On the field, the team coached by Mike Ruddock have moved up to fourth place in the Celtic League and are beginning to make real strides.
This move will at least allow them to meet their playing commitments, although it is understood the players refused to take a 10 percent pay cut. Even so, a few players who don't make the 30-strong European squad are likely to be shown the door.
"We will do all we can to ensure the club's commitments to the Celtic League and the Heineken Cup are met and have every intention of honouring all of the Dragons' forthcoming games," said Paul Harding, of PricewaterhouseCoopers, who is one of two appointed administrators.
"We aim to assist the Directors in finding a swift solution which will ensure financial stability and continuity of the Newport Gwent Dragons in the regional rugby arena in Wales."
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