Exeter Chiefs have finalised a deal with a wealthy American backer to take control of the club, subject to the approval of their membership. An extraordinary general meeting is to be held on 7 May when members will be urged to support the move to sell the 155-year-old club and unlock significant fresh funding.
Insiders are describing the impending multimillion pound investment as “meaningful” at a pivotal stage in the development of English professional club rugby. The existing 10-team Prem is to become a franchise “expansion” league from 2029-30 and the race for new funding is accelerating.
Last August, Red Bull completed its takeover of Newcastle while the billionaire Sir James Dyson has recently acquired a 50% stake in Bath alongside the club’s longtime supremo Bruce Craig and pledged to commit substantial new capital.
Exeter have previously been backed by companies led by their chair, Tony Rowe, but, at 77, he has made clear he cannot invest any more money after three decades of involvement. The Chiefs have been seeking fresh investment for a couple of years and they were in contact with more than 80 companies and individuals before identifying their preferred new backer.
Exeter posted an annual loss of £10.3m last year after trailing in ninth in the Prem table, but they are now a more saleable proposition. They sit in fourth position in the league before Saturday’s visit of the leaders, Northampton, and have also reached the semi-finals of this season’s Challenge Cup.
Rob Baxter, the Chiefs’ director of rugby, has also just signed a new extended contract and it is understood Rowe would stay on under new American ownership, assuming the deal receives the go-ahead next month.
“The proposal is for the members to accept,” said Rowe. “At the moment I can’t discuss what that proposal is in any shape or form, other than it is an American investor. They want to get involved in English rugby.”
Prem Rugby is also launching a tender process to secure external investment in the competition now that formal agreement has been reached to remove the threat of relegation from the top league. The English top division has previously invited the investment bank Raine Group and the accountancy firm Deloitte to conduct a review of the sport’s finances and potential funding options.
The Prem sold 27% of its commercial rights to the private equity firm CVC Capital Partners for around £200m more than seven years ago. Since then it has been working to stabilise its post-Covid finances after a turbulent period when three sides – Wasps, London Irish and Worcester – filed for bankruptcy.
There has been hopeful talk of all three clubs rejoining the Prem at some stage, but others may get there first. Knighthead Capital, the owners of Birmingham football club, are interested in investing in a rugby operation in the West Midlands while a Yorkshire-based franchise is also under discussion.
