Tony Rowe, the chairman of Exeter Chiefs, is actively pursuing new investment opportunities as the club recently reported a staggering loss of £10.3 million. This financial setback comes on the heels of a disappointing season where the Chiefs finished in a dismal ninth place, marking their worst performance in the top league.
The Exeter Rugby Group, which oversees the Chiefs and also manages the conferencing operations at Sandy Park, faced a significant burden by having to write off a loan amounting to £6.2 million. This loan was linked to a hotel located on the Sandy Park premises, which Rowe purchased from the club in December 2022. The intention behind this acquisition was to help alleviate some of the financial strain caused by debts incurred during the Covid-19 pandemic, as Exeter still grapples with several loans taken out while matches were played without spectators.
If we exclude the loan write-off, Exeter's pre-tax losses would have totaled just over £3 million, reflecting an increase of more than £2.5 million compared to the previous year. The club's revenue experienced a decline of approximately £1.5 million, while wage expenses across the organization saw a slight increase of £1.4 million.
Interestingly, while income generated from conferences and events at Sandy Park remained stable at just over £2.5 million, the rugby segment suffered a drop exceeding £1.5 million. This downturn can be attributed to the poor performance on the field, which led to decreased attendance at games.
Rowe remains optimistic about the future, stating in an interview with BBC Radio Devon, "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. We are in a good position. It has taken a couple of years to get there, but if someone wants to come along and invest, they need to see potential for growth, and I believe Exeter has a lot of that."
He is particularly hopeful that a new franchise model proposed for English rugby’s top tier could spark greater interest from potential investors looking to support the club.
At 77, Rowe has been leading Sandy Park since 1998, and his financial acumen has played a crucial role in Exeter's ascent from the lower leagues to the highest echelons of domestic rugby. Since moving to Sandy Park in 2006, the club has expanded its stadium capacity and achieved remarkable success, clinching two Premiership titles and the prestigious European Champions Cup in 2020.
However, having sold off many of his other business interests, Rowe believes it is time for a new leader to take the helm. He expressed, "I’ve truly enjoyed my 30 years with the club, and I openly acknowledge that I used my connection with Exeter Chiefs to promote my businesses, which allowed me to invest in the club. But now we’ve reached a point where both the club and I must move forward, and we are actively seeking an investor.
"If I were 20 or 30 years younger and presented with this opportunity, I would seize it without hesitation. The club will require additional financial backing over the next few years as we transition to the new franchise model, which is anticipated to roll out within the next four years. I am currently in discussions with various parties, including a London-based firm assisting us, as we explore options and hopefully arrive at some decisions in the first or second quarter regarding our path forward."
