EBBW Vale Rugby Club are making 14 people redundant as they put a radical plan into operation to keep them in business.
They had pleaded for help from the Welsh Rugby Union to ease their cash flow problems or run the real risk of folding.
The WRU have agreed to fast forward Ebbw Vale some of the £650,000 - less than most of their Welsh League Premier Division rivals receive - which means the club will survive, but at a cost.
They have sent out redundancy notices to eight staff and six players.
Club chief executive Tony Dilloway, who helped draw up the rescue package, has made himself redundant.
Also going are the office manager, administrative assistant, bar manager, cook and two cleaners plus one other staff member they have yet to inform.
The club have refused to name the players they are cutting, but the number is believed to be six, with Wales A wing Andrew Wagstaff, the highest profile player to go. Director of rugby Ray Harris will become part-time.
Apart from the staff being made redundant, all social facilities at the club will cease to exist, though ways are being sought of opening on match days.
"These decisions are heartbreaking, but we were determined to do it to keep going and to ensure the product on the field is as exciting as it was", said Marcus Russell, chairman of the board of directors.
"Ebbw Vale is the most economically depressed area in Wales and losing the rugby club would have been another hammer blow".
Russell stressed the club's coaching staff, playing structure and playing facilities would not be affected by their action.
Dilloway, who signs himself off at the end of next month, said: "It's not about me, it's about Ebbw Vale RFC, the rugby and the product.
"The circumstances are unusual, and the concept of mothballing the off-the-field activities is very radical. But we were faced with that or destroying the rugby side".
Coach Mike Ruddock, also the Wales A coach, has described the decision as "devastating" while club captain Chay Billen says: "It is a bit demoralising, a bad day".
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