The Welsh Rugby Union has reached an agreement with the administrators of the Newport Gwent Dragons. Two Union representatives (Steve Lewis and David Pickering) and two from Newport (Martyn Hazell and Tony Brown) will form a four-man board for the region, and from next season the team will be known just as the Dragons.
As part of the deal, Brown will provide additional funds to the new regional team until the end of the 2005/6 season.
Scarlets chief executive Stuart Gallacher is unhappy with the outcome, though, and says he wants the WRU to look at the funding of the regional sides.
Gallacher says he has written to the WRU because the Scarlets and the Blues received �400,000 less in funding from them as stand-alone clubs compared to the merged entities, when the Dragons and the Warriors are now effectively stand-alone outfits too.
Despite Gallacher's objections, WRU general manager Steve Lewis was pleased with the outcome.
"Given the difficult circumstances that have been experienced in the Gwent region this year, we feel this is the best possible deal to ensure the ongoing viability of the Dragons," he said.
"This is not a situation that was created by the Union, but one which we have inherited. "We see ourselves acting as the trustee shareholders on the board of Dragons Rugby Ltd for the rest of the rugby clubs in the region.
"Moreover, we intend to ensure that the best interests of the team and the game are served throughout the whole region.
"The team will be officially known as the Newport Gwent Dragons, but will be marketed as the Dragons.
"From next season on, neither the name Newport nor Gwent will appear on the team jersey, which will merely carry the club logo of the dragon's tail and the name 'Dragons'.
"All the contracts of the current players and team management will revert to the new company and everyone involved with the new board is totally committed to the regional rugby concept."