American investor agrees to buy Exeter Chiefs with plans to inject fresh funding

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 at which members will be urged to support the move to sell the 155-year-old Devon 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 the energy drinks company 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 personally invest any more money after three decades of involvement. The Chiefs have been seeking fresh investment for a couple of years and it is understood they were in contact with more than 80 companies and individuals before identifying their preferred new backer.

Last year Exeter posted an annual loss of £10.3m after trailing in ninth in the Prem table but the Chiefs are now a more saleable proposition. They sit in fourth position in the league ahead of this weekend’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 when approached by 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.”

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 over seven years ago in a bid to stabilise its post-Covid finances after a turbulent period in which 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. It is understood that Knighthead Capital, the owners of Birmingham City, are interested in investing in a rugby operation in the West Midlands while a Yorkshire-based franchise is also under discussion.