Newport Gwent Dragons chairman Martyn Hazell says a claim for £50,000 and £394 interest issued by joint regional club founder Marcus Russell against Gwent Rugby Ltd was the final straw that sent it into administration.

Ebbw Vale chairman Russell, who jointly founded Gwent Rugby Ltd with Newport benefactor Tony Brown, declined to comment to the Argus on the record.

Hazell said: "Marcus Russell himself personally has issued a writ on Gwent Rugby Ltd, on the Dragons, the baby he helped to conceive, for £50,000 he says he's owed.

"In my opinion, we wouldn't have had to go into administration today. We were still trying to sort it out."

The move into administration means administrators PriceWater-houseCooper effectively have a fortnight to save the Dragons from liquidation.

It is hoped an agreement with creditors, cost cutting, an agreed reduction in the salaries of players, coaches and other staff and other financial restructuring will rescue the club.

Five players are already understood to have been offered redundancy packages.

Hazell estimated a loss of around £1m had the board of Gwent Rugby Ltd. tried to see out the season.

Now it is hoped for savings of around £650,000, with multi-millionaire Newport benefactor Tony Brown prepared to underwrite the remaining losses.

The Dragons hope the Welsh Rugby Union will assist but it depends on the administrators and whether they can get the Union on board.

A 50-50 partnership between the Union and Newport has been mooted, but it is thought the Union will not want to go down that road. Central contracts is another possibility.

WRU chief executive David Moffett, however, has already said the Union would not bail out any regions.

A statement from the administrators says: "Other teams in the Celtic League have also faced cash pressures recently and this is something that Celtic regional rugby must address.

"Gwent Rugby Ltd. is taking positive and prompt action effectively searching for a solution in its current difficulties."

Company spokesman Paul Harding adds: "Following our appointment as administrators we aim to assist the directors in finding a solution which will ensure financial stability and continuity of Newport Gwent Dragons as a regional rugby area of Wales.

"We will do all we can to ensure the club's commitments to the Celtic League and Heineken Cup are met and have every intention of honouring all of Newport Gwent Dragon's forthcoming games."

Hazell added: "There are problems in all the Welsh Celtic League clubs and the finances just don't add up. Supporters haven't really got on board with any region.

"I am doing my best to keep professional rugby alive in Gwent. We have to restructure. The alternative is liquidation.

"Administration will hopefully halve the current debts and by saving money from players and other departments hopefully we can keep it going for this season."

Hazell claims the administrators have to complete their work in a fortnight (by the Dragons' next game against Connacht) because "if it goes longer than that the administrator is personally responsible for everyone's salary and they are not going to allow that to happen."

Gwent Rugby Ltd., the company set up by Newport and Ebbw Vale, has been wracked by internal disputes and rivalries which cost them sponsorship, advertising and supporters. Average home gates this season have around 3,000.

* Newport Rugby Club have asked us to point out that the Dragons' move into administration does not affect the club side in any way. Newport and the Dragons' season tickets and joint Dragons/Newport tickets remain valid.