Baxter moves to allay fears over Chiefs’ future
Club are being ‘upfront’ with supporters regarding vote to sell off non-rugby assets
ROB Baxter has moved to allay fears over Exeter Chiefs’ financial position following the club’s worrisome statement last Friday.
The club released an official statement confirming an Extraordinary General Meeting of their members will be called to vote on the sell-off of undisclosed ‘non-rugby assets’ to be able to fulfil the club’s substantial loan repayments.
According to the latest available accounts up until June 30, 2021, the group that runs the club had total borrowings of £28.1m, which included a Barclays Covid-19 loan of £5m, a Sport England loan of £6.8m and a NatWest loan of £6.6m.
The statement from the club read: “As a result of the Rugby Football Union and Premiership Rugby Limited’s decision to continue playing behind closed doors during the Covid-19 pandemic, Exeter Rugby Club were forced to borrow substantial government-backed loans to pay our players and staff.
“The funding from government was not in the form of grants, but loans which carry interest. These are due to be repaid and the income from our normal trading is not sufficient to pay them and all other expenses.
“Accordingly, the Rugby Club Board decided to sell one of our nonrugby assets for which members’ approval is needed and which is being sought at an Extraordinary General Meeting at Sandy Park on Wednesday, November 30.
“This should be more than sufficient to see the club pay the loans and be financially secure for the future.”
The statement comes with professional rugby’s financial landscape in turmoil in 2022 with Worcester Warriors and Wasps having both gone into administration, suspended from the Gallagher Premiership and relegated ahead of next season after being unable to repay their various debts.
In his midweek press conference ahead of Exeter Chiefs taking on London Irish tomorrow, director of rugby Baxter said: “I wouldn’t say it is anything more than us being up front about the members are going to be asked to take a certain stance on certain things and we just wanted to be up front.
“What we didn’t want was for it to leak through social media that something was happening and all of a sudden it becomes a more major story with us having no control over the discussions of it.
“Basically at the end of the day, it’s a business decision for the members to agree with the board on, that’s the long and the short of it really. It’s just a decision really to keep the club moving forward.
“I’d be honest with you, if what happened with Wasps and Worcester hadn’t happened we probably wouldn’t have even made a comment because everyone wouldn’t have been searching for a story... it would have just been a decision that was made and would have come out afterwards. That’s what it is, just putting our ducks in order as regards the yes and no that has to happen for the directors to act in the way they see the business going forward.”
Baxter said he is unable to provide any more information on which “non-rugby asset” the club is planning to sell, but Exeter do have significant assets with a 75 percent share in the company that operates the recently completed £40m Sandy Park Hotel amongst them.