Tony Rowe, the chairman of Exeter Chiefs, is actively seeking new investment as the club grapples with a staggering loss of £10.3 million for the past season. This financial setback comes on the heels of a disappointing performance where the Chiefs finished in ninth place, marking their poorest showing in the league's history.
The Exeter Rugby Group, which oversees not only the rugby operations but also the conference services at Sandy Park, faced substantial challenges last year. A significant factor in their losses was the requirement to write off a loan amounting to £6.2 million. This loan was linked to a hotel situated on the Sandy Park premises, which Rowe had purchased from the club in December 2022. This strategic move was aimed at alleviating some of the club's financial burdens stemming from debts incurred during the pandemic, as Exeter still owes several loans that were taken out while matches were held without spectators.
If we set aside the impact of the loan write-off, Exeter's pre-tax losses amounted to just over £3 million, which represents an increase of more than £2.5 million compared to the previous year. The club's revenue saw a decline of approximately £1.5 million, while expenses related to wages throughout the organization rose by £1.4 million.
Despite the turbulence in the rugby segment, which experienced a revenue drop exceeding £1.5 million due to a decrease in attendance linked to poor team performance, the income generated from conferences and events at Sandy Park remained stable at just above £2.5 million.
Tony Rowe expressed optimism about the future during an interview with BBC Radio Devon, stating, "I have no doubt that within the next two to three years you will find us back right at the top knocking on the door for Twickenham and wherever the European Championship final will be." He further elaborated on the potential for growth, saying, "We’re in a good place. It’s taken a couple of years to get us back there, but if somebody’s going to come along and wants to invest, then they need to have an upside, and I believe we have a lot of upside at Exeter."
Rowe is particularly hopeful about a proposed new franchise model for the top tier of English rugby, which he believes could spark renewed interest from potential investors in the club.
Having led the charge at Sandy Park since 1998, the 77-year-old businessman has played a crucial role in Exeter's rise from lower league obscurity to becoming a powerhouse in domestic rugby. Under his leadership, the Chiefs have celebrated multiple successes, including two Premiership titles and the prestigious European Champions Cup in 2020, following the club's relocation to Sandy Park in 2006 and subsequent stadium expansion.
However, with many of his other business ventures now sold, Rowe acknowledges that it is time for new leadership. "I’ve enjoyed my 30 years running the club and doing what I’ve done, and I made no bones about it; I used the association with Exeter Chiefs to promote my businesses, and that’s how I could afford to put the money into the club," Rowe remarked. "But we’re at a stage now where we’ve got to move on; the club’s got to move on, and we’re looking for an investor. If I was 20 or 30 years younger and presented with this opportunity, I’d jump at it."
He noted that the club will require ongoing financial support over the next two to three years until the anticipated franchise system takes effect, likely within four years. Rowe mentioned, "I’m talking to people, and we’ve got a London company that’s handling it for us. We’re exploring options with various interested parties and hope to make decisions on our direction in the first or second quarter."
