Exeter Chiefs set for US investment as Premiership Rugby clubs seek backing

An extraordinary general meeting is scheduled for next month to approve the multimillion-pound deal

Exeter Chiefs are poised to become the latest in a wave of Premiership Rugby clubs to secure fresh investment, with American backing anticipated at Sandy Park.

An extraordinary general meeting is scheduled for next month to vote on proposals that would see an unnamed US backer make a multimillion-pound investment in the Devon club.

The Guardian reports that members will be encouraged to back the motion. The club’s chairman, Tony Rowe, who has financially supported Exeter Chiefs’ rise from the second tier to European champions, has acknowledged he can no longer sustain the club’s funding in the long term, having previously explored and abandoned plans to float on the stock market.

“The proposal is for the members to accept,” Rowe told the Guardian. “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.”

Should the new investment receive the green light, it would follow energy drinks giant Red Bull’s entry into England’s top-flight Premiership Rugby with Newcastle and the multimillion-pound investment from billionaire Sir James Dyson into defending champions Bath.

Exeter Chiefs’ West Country rivals Gloucester Rugby also appear to be pursuing investment from across the Atlantic, with owner Martin St Quinton stating in promotional material for a fan-focused crowdfunding campaign that the absence of relegation makes the league considerably more appealing to American investors.

The Devon-based club, whose squad boasts the likes of England international Henry Slade and former Wales captain Dafydd Jenkins, recorded losses of £10.3m in their most recent accounts, amid a wave of negative returns across the Premiership, as reported by City AM

Investing in England’s top tier guarantees a portion of the central revenue, 27 per cent of which is channelled to private equity giant CVC Capital Partners, which has recently consolidated its varied sports assets into the umbrella organisation Global Sports Group.

Global Sports Group encompasses CVC Capital Partners’ Premiership Rugby investment alongside shareholdings in the Guinness Six Nations and the multi-national United Rugby Championship.

A review of Premiership Rugby carried out by Big Four firm Deloitte and merchant bank Raine Group concluded that the top flight should transition to a franchise model before the end of the decade, with plans to expand to as many as 20 teams by 2040.