Exeter Chiefs to sell 'non-rugby asset' to help repay Covid-19 loans

Exeter have played their home games at Sandy Park since 2006

Exeter Chiefs say they will ask the club's members for approval to sell one of its "non-rugby assets" to help repay government loans the club took out during the Covid-19 pandemic.

According to accounts up until 30 June 2021, the group that runs the club had total borrowings of £28.1m.

Those included a Barclays Covid-19 loan of £5m, a Sport England loan of £6.8m and a NatWest loan of £6.6m.

The club also owed £10m in a bond issue that helped to expand Sandy Park.

Exeter's admission that they are currently unable to repay those loans comes as a number of Premiership clubs struggle with the financial aftermath of the Covid-19 pandemic, which saw matches played behind closed doors and in front of reduced gates.

Worcester and Wasps have already gone into administration and been removed from the Premiership after their financial issues, while there are reports that other clubs also face problems.

"The funding from government was not in the form of grants, but loans which carry interest," a club statement read.

"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 non-rugby assets for which members approval is needed and which is being sought at an Extraordinary General Meeting at Sandy Park on Wednesday, 30 November.

"This should be more than sufficient to see the club pay the loans and be financially secure for the future."

The Chiefs have not stated which "non-rugby asset" it is planning to sell.

But the club holds a 75% share in the company that operates the Sandy Park Hotel - a £40m development which was officially opened at the end of April.