Exeter Chiefs Chairman Tony Rowe has labelled reports on social media that his club are in financial trouble as ‘wide of the mark'.
Following the demise of London Irish last week, in a statement released on Tuesday, he referred to some of the same talking points that have dominated the subject in recent seasons.
“For the last three years, ever since Covid hit, every club has been tested like never before,” said Rowe. “It's been a real challenge for all of us, not helped by the ongoing situation with the war in Ukraine.”
“Thankfully, the club had assets within its business structure that we were able to use to help bring much-needed funds back in to help combat the repayment on loans and address other issues around the finances.”
This has not been the first time Rowe has commented on the struggle of Covid recovery. In April he described the ‘horrendous' terms of Covid loans and the predatory nature of DCMS (Department of Culture, Media and Sport).
Rowe likewise hoped to hush the fears of supporters by stressing the financial viability of the club.
“Sandy Park itself is incredibly busy,” he added. “Sandy Park Hotel is very busy and with crowds starting to come back into stadiums, both for our men's and women's teams, as well as the concerts we are holding here this summer, we see a bright and exciting future ahead for the club and for our business as a whole.”
‘Personally, I'm really looking forward to the future,” continued Rowe. “The squads we are assembling for the new season are hugely exciting and clearly with an eye to the long-term future as well.
These respective comments come in the wake of the club selling its 75% stake in the Sandy Park hotel, along with the departure of high-profile names this Summer such as Jack Nowell, Stuart Hogg and the Simmonds brothers.
Rowe then went on to discuss the general state of the sport and the need for the authorities running the English game, including Premiership Rugby and others, to find ways of increasing funding for clubs.
“As I said, it's been a financially challenging time for all of us,” he added. “But what I guess it has shown is just how underfunded the game of rugby itself truly is.
“That's something not only clubs have to address moving forward, but it's also for the likes of Premiership Rugby and those who run the game in this country to really look into.
“We can't afford to standstill in any shape or form. For the game to grow in the manner we all want, we have to be looking at developing every aspect of it, both on and off the field.”
Exeter will be hoping that victory in the upcoming Premier 15s final later this month will provide much-needed respite in what has been a tumultuous season for the club.
Written by Rupert Reddish
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The Premiership is not underfunded, it overspends.
Do to the difference in popularity between the English Soccer Premiership, and the French League, the English clubs do not have the TV income that French clubs do, – so they cannot simply spend at the levels they do.
As Dickens had Mr Micawber say, income £20, outgoing £20 0s 6d, result misery.
The Premiership clubs ought to know that.
But their owners have, for whatever reason, been prepared to fund clubs from their own pockets – until their fortunes run out.
If the club owners cannot be responsible, either the PRL or the RFU should set a salary cap based on each club’s income – and actually enforce it.
While that would mean, either lower wages or smaller squads, or both – it is what the game can afford.
The longer term answer is to grow the pie.
But the money that should be spent on marketing, is currently going into players pockets.