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."
All roads lead to Cardiff on Sunday for the SSE SWALEC Finals Day at the Millennium Stadium. Cambrian Welfare tackle Ystradgynlais in the Bowl final, Ystrad Rhondda play Newcastle Emlyn in the Plate final while defending champions Pontypridd face Bridgend in the Cup final.
WRU Chief Executive Roger Lewis, Deputy Minister for Culture, Sport and Tourism Ken Skates and WRU Chairman Gareth Davies earlier this week launched a new competition in conjunction with the WRU unveiling its archive room.
Welsh players and management joined Deputy Minister for Sport Ken Skates at the Pierhead Building, Cardiff Bay earlier this week to reveal the Union's pioneering school-club hub initiative has been so successful the project will now almost double the scale of the original project.
The Scarlets, Newport Gwent Dragons, Cardiff Blues and the Ospreys look ahead to Judgement Day III which sees the Blues take on the Ospreys (2.30) and the Dragons tackle the Scarlets (4.45pm) at the Millennium Stadium tomorrow afternoon.
Ystradgynlais and Ynysddu played out a titanic struggle at Taffs Well in the SSE SWALEC Bowl semi-final. At the end of the game neither team could be separated after a 15-15 stalemate but Ystradgynlais go through on try count.
Blues strike first in JD III battle - Newport Gwent Dragons lock Andrew Coombs, WRU referee Dylan Llyr Jones and Cardiff Blues hooker Matthew Rees decide dressing room allocations for Judgement Day III
Wales Under 18 captain Calum Haggett has received a conditional offer to read Biomedical Science at St Anne's College, Oxford. WRU chairman Gareth Davies went to meet Calum and Coleg y Cymoedd Principal Judith Evans to wish him luck in his exams and pass on some of his personal experience.