MARTYN Hazell has warned that "the receivers would be in the next day" if the Welsh Rugby Union's proposed deal for Newport Gwent Dragons and Rodney Parade doesn't get the go-ahead.

The governing body have outlined their takeover plan for the Dragons and the famous ground, which is currently owned by Newport RFC.

They have agreed a heads of terms agreement that would see all of the region's staff, players and coaches become WRU employees on July 1.

They intend to drop Newport and Gwent from the name and have a preference to replace the tired surface with an artificial pitch while also investing in the Stadium facilities.

However, any deal needs to be ratified by the shareholders of Newport RFC with an EGM set to take place next month. There are around 1,000 listed and the green light needs to be given by 75 per cent of voters.

Supporters of the Black and Ambers have expressed their concerns about the sale of their club's asset and only having assurances about their future of playing at their historic home rather than a long-term lease.

But the Dragons and Newport are heavily in debt and owe around £1million to the WRU, around £1million to Handelsbanken, around £1.5million to chairman Hazell and £3million to fellow director Tony Brown.

The proposed agreement would see the formation of a new company, a subsidiary of the WRU, that would be free of any historic debt.

"I am happy with this deal, it's the only way forward for rugby at Rodney Parade," said Hazell.

"What's the alternative? Things will all be explained to supporters in the coming weeks and I will go to the EGM but I hope that the members will see sense because the alternative is disaster."

When asked what would happen to the debts if the shareholders do not give their approval, with the suggestion in some quarters that Newport RFC could sell the land themselves to developers to fund a new ground, Hazell said: "The receivers would be in the next day if the vote is no. There would be no money.

"It'd be the end of rugby here. The money that is being put in by the WRU is to pay off the debts and it will nearly all be written off by me and Tony.

"We are giving most of it (the loans) away and will see what we end up with. I can't see any other way, if the shareholders vote not then that's their decision but all we've got then is the receivers."

Stuart Davies, chief executive of Newport and the Dragons, met with regional supporters last night and will field questions from Black and Ambers fans at Rodney Parade on Monday (7pm start).