THE Dragons have agreed a deal with the Welsh Rugby Union that will see them go into private ownership – and buy Rodney Parade.
A consortium led by chairman David Buttress signed a heads of terms agreement with the governing body late on Friday afternoon to take over the club.
The Dragons will now be privately-owned like their rivals Cardiff, the Ospreys and the Scarlets, which was a requirement of a new six-year funding arrangement with the WRU that was signed in March.
And in a late development, the consortium have stumped up the funds to take over the historic nine-acre Parade site rather than just take over the sporting operation.
“Following a thorough and detailed process, a heads of terms agreement has been signed today a deal which will benefit all relevant stakeholders in the Welsh professional game,” read a Dragons statement.
“The new deal will allow Dragons RFC to pursue a clear and long-term strategy and take ownership of Rodney Parade.”
READ MORE: WRU reaction to Dragons deal
The initial plan was for the Dragons to secure a long-term lease for the stadium site with the governing body retaining the northern section, featuring the ‘cabbage patch’ and clubhouse, for development.
However, the consortium have now agreed to take over the whole thing with the details of the sale yet to be confirmed.
That means that Newport County AFC will now sign a new long-term lease with the Dragons to continue the groundshare at the venue, with the Exiles having primacy of tenure as required by the Football League.
The WRU got something of a bargain when buying Rodney Parade from Newport RFC in 2017 – they paid £2.85million, wiped off an existing £900,000 loan and gave the Black and Ambers a cash sum of £600,000.
It is likely that the Dragons had to exceed that figure after the other professional clubs, Cardiff, the Ospreys and Scarlets, put pressure on the governing body to get a good deal.
Due diligence and legal work needs to be done but the Rodney Parade club will be privately-owned in the coming weeks, something that Buttress has been targeting for a number of years after being brought in as chairman by the WRU in 2017.
Details of the deal are yet to be revealed while the individuals on the consortium have not been confirmed, although the Argus understands one is from Gwent.
“We are delighted to have reached an agreement to take the club into private ownership,” said Buttress.
“This is a momentous day in our club’s history and the start of an exciting new chapter for us all at Rodney Parade and for rugby right across Gwent.
“It is an enormous responsibility to become custodians of this club. Our ambition is aligned with our supporters, and we will continue to build a true family club and work with local stakeholders to help deliver professional sport and sustainable long-term growth for the area.
“We thank Nigel Walker and his team at WRU, Malcolm Wall for his support and guidance and the consortium team for their unwavering commitment.
“A huge final thank you to all Dragons fans and partners, who make up the wider Dragons family, for their incredible support.
“We look forward to working together with them and sharing more details in the coming months. I would now ask everybody to come together and get behind the club.”
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