NEWPORT Gwent Dragons have held initial talks with 'credible' potential investors after tempting them with the offer of becoming owners of a professional team.

In April the Dragons announced a proposal that would see their joint owners, Newport RFC and the Welsh Rugby Union, transfer their shares to new investors.

The region's balance sheet would be improved by the capitalisation of loans and writing off debt, allowing new funds to be ploughed into the team, while the Dragons would sign a lease with the Black and Ambers, who will maintain ownership of Rodney Parade.

The move was a year in the making but still required some detail being put in place and after achieving that, with the added financial and legal expertise of a Cardiff-based consultancy firm, they have started discussions with several interested parties.

"There has been strong interest from both collectives and individuals that we are following up and there are some exciting possibilities," said chief executive Stuart Davies.

"Our information memorandum – our prospectus – has been made available to those who have credible credentials, although we are not close to signing at the moment so naturally would welcome even more interest.

"I will reiterate that while it would be wonderful to secure a single benefactor, we would also be interested in joining up single individuals who would look to be part of a new arrangement.

"We are following up interest and tentative enquiries. Finalising that information memorandum has taken longer than I'd like and it's not possible for more detailed discussions without that being in place.

"It is now (in place) and the positive thing is that we've had credible interest from individuals and collectives that can progress this."

It does, however, remain at the start of the sale process and it is business as usual for the Dragons board ahead of 2016/17.

"We have piqued peoples' interest and have had a variety of approaches," said Davies.

"Now it's a case of progressing that and seeing if they like what we are tabling and if the board are happy with what's coming forward.

"While we have had interest and had some negotiations, we are far from being home and dry. There is some relief that we have had interest but we are only a small way into the process."

While the Welsh Rugby Union have not been involved in discussions, the governing body have been kept updated with the situation and would need to give the green light to any fresh investors.

Dragons chairman Martyn Hazell emphasised in April that while "fresh blood" is needed, new investors would have to be the right fit.

"It's time for a new board and a new challenge for somebody else," he said. "We have done our bit but I will stay here as chairman until we find the right person to take it on."