Who owns Exeter Chiefs?
The name that's synonymous with the Exeter Chiefs is prominent Devon businessman Tony Rowe and many people think he is the owner of the club.
But in fact, Exeter Rugby Club - which operates Exeter Chiefs - is owned by Exeter Rugby Group Plc, which is a public company is owned by shareholders.
Much of the transformation of Exeter Rugby Club has happened since the English rugby scene turned professional in the late 1990s. At this time a limited company structure was created to run all of the club’s affairs through a board of seven directors, chaired by Tony Rowe.
Even now, however, it remains a members’ club with the company shares held by four trustees – John Lockyer, Bob Staddon, Paul Derbyshire and Ian Pugsley – who act on the sole wishes of the 700-strong membership.
In 1993, it issued bonds to pay for major investment at the Sandy Park Rugby Ground - it raised nearly £6million to develop the stadium, paying 7% a year interest and matured in 2020.
The Group went on to issue the 2027 bond in late 2020, it has raised more than £10million by asked investors for at least £1,000 each so it could upgrade facilities at its Sandy Park home and keep the club at the pinnacle of the sport.
According to company accounts - Mr Rowe invested £2million through each of the bond schemes and several other directors and close family members invested a further £607,000 in each of the bond schemes.
The issuance of new bonds does not affect ownership of the company or how the company operates.
The Exeter Chiefs 2027 Bond cash is being used to enhance “all facets of the business over the coming years”. This included the new extension of the East Terrace - raising match-day capacity by a further 1,948 covered seats, and hike stadium capacity to 15,600 - and the completion of the £40million Sandy Park Hotel, a four-star Marriott Courtyard hotel.
Exeter Rugby Group Plc incorporates the Exeter Chiefs Premiership Rugby team, Sandy Park Conferencing Centre and the newly opened hotel.
It is managed by eight directors - Tony Rowe CBE is the chief executive and chairman, Deputy Chief Executive Kieron Northcott, Director of Rugby Rob Baxter, Academy Director Steve Byrne, Finance Director Alan Quantick (who steps down at the end of the 2022 season) , Mark Champion, Brian Lodge and Chris Over.
Who is Tony Rowe OBE?
Mr Rowe's involvement with the club began when he came on board as sponsor through his telecoms firm SW Comms.
He retired from the firm in February 2021, standing down as chief executive and chairman when it was bought by Focus Group - a Brighton-based tech firm.
Focus Group’s acquisition of SW Comms, set up by Mr Rowe in 1983, has retained the name.
He has lent the club cash in the past. Company accounts reveal that he has given personal guarantee to the tune of £1.75million for loans issued to the company.
And he made an interest-free loan to the group of £410,668 as part of the purchase of the recently opened Sandy Park Hotel.
Mr Rowe also has business interests elsewhere including Exeter Estates, a huge new business park, which he is a director of, and he is a director of Lympstone Manor, headed by Exeter-based Michelin chef Michael Caines.
He left school at the age of 15 and joined the Royal Marines Band as a drummer and bugler. Made redundant from the Royal Marines in 1973, he started Exe Marina Services company selling and repairing powerboat engines. He went on to race powerboats successfully becoming the British champion winning the Rouen 24hr powerboat race and setting a new British water speed record.
It was while growing SW Comms that he was offered to take over the running of Exeter's rugby club in 1998. For the previous five years Tony had been the club's sponsor but his business expertise was called upon when it formed a board of directors, turning the club into a limited company.
Tony said, in this DevonLive interview: " Back in 1998 it was really struggling. They had entered the semi-professional league as amateurs and fell flat on their face.
"I could see their potential so the first thing I did was bring in professional coach Ian Bremner who turned the club around under my guidance and management. Our aim was to get into the premiership. A lot of people said I was a dreamer but I knew we could get there."
Tony's achievements don't just include reaching that goal, but also relocating the club from its former County Ground site to Sandy Park in 2006, and seeing the Chiefs becoming European Champions in 2021 and the club going from a turnover of around £150,000 in 1998, to £21.6m pre-pandemic in 2019.
One of his passions is fire engines, including 16 fire engines dating back from the handcar and horse drawn steam engine and a further 350 model fire engines.
He was awarded the OBE for services to business, sport and charity in the 2012 Queen's Birthday Honours List and has since received an Honorary Doctorate of Laws from University of Exeter, as well as being given the Freedom of the City of Exeter.
How does it make money?
The Group has a number of revenue streams including rugby related income - match day tickets, sponsorship, season tickets and Premier Rugby central income.
It also brings in cash via its Sandy Park conferencing and banqueting facilities, plus the newly opened Sandy Park Hotel.
But it has taken a hit during Covid-19 restrictions.
The Group made a pre-tax loss of more than £4m when the Covid pandemic shut its stadium.
In its annual report for the year ended June 30, 2021, figures show turnover almost halved to £9,628,947 during the coronavirus hit season.
It left the company with a pre-tax loss of £4,173,545 - almost twice as much as the £2,266,600 loss for 2019/20.
But the report said directors were upbeat when restrictions were lifted for the 2021/22 season and paying customers could return to matches and corporate events at the Sandy Park stadium.
It forecast the company returning to profitability within two years.
