Exeter now in trouble?

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daktari
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Exeter now in trouble?

Post by daktari »

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Rugbygramps
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Re: Exeter now in trouble?

Post by Rugbygramps »

Anybody know what this non rugby asset might be.
daktari
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Re: Exeter now in trouble?

Post by daktari »

Rugbygramps wrote: Fri Nov 04, 2022 4:54 pm Anybody know what this non rugby asset might be.
I think they have a hotel, maybe that?
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sk 88
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Re: Exeter now in trouble?

Post by sk 88 »

Rugbygramps wrote: Fri Nov 04, 2022 4:54 pm Anybody know what this non rugby asset might be.
Either the freehold to the David Lloyd gym or the hotel.

Their statement doesn't really make sense, their most expensive debt is their natwest loan that easily pre-dates the pandemic. The DCMS loan is the cheapest and a quarter of the cost of that Natwest loan.

They did take a CBILS (the govt scheme before the DCMS one just for rugby clubs) which is expensive so perhaps they mean that.

They've been praised to the hilt but they've always been punchy on their borrowing, and as its all commercial some of it is very expensive now. Typically they are paying LIBOR (which is 4.46% currently) + a high 3.5%. We pay base rate +2% as a comparison.
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wormus
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Re: Exeter now in trouble?

Post by wormus »

sk 88 wrote: Fri Nov 04, 2022 5:59 pm
Rugbygramps wrote: Fri Nov 04, 2022 4:54 pm Anybody know what this non rugby asset might be.
Either the freehold to the David Lloyd gym or the hotel.

Their statement doesn't really make sense, their most expensive debt is their natwest loan that easily pre-dates the pandemic. The DCMS loan is the cheapest and a quarter of the cost of that Natwest loan.

They did take a CBILS (the govt scheme before the DCMS one just for rugby clubs) which is expensive so perhaps they mean that.

They've been praised to the hilt but they've always been punchy on their borrowing, and as its all commercial some of it is very expensive now. Typically they are paying LIBOR (which is 4.46% currently) + a high 3.5%. We pay base rate +2% as a comparison.
This article on the BBC might give more of a clue as to their loans and the possible offloading of the new hotel, but with that level of debt it does not look good.. This might well explain the very high cost of the tickets, £60 for a seat in the new stand on the
22> to goal line! https://www.bbc.co.uk/sport/rugby-union/63520511
sk 88
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Re: Exeter now in trouble?

Post by sk 88 »

Yes that is a correct analysis of their debt from the BBC in my opinion. From their accounts they are the only club to take a CBILS as well as the DCMS loans.

Their debt is expensive but they have built a great deal with it. As Rob Baxter might say though, the salary cap is a cap not a target so just need to tighten their belt a bit!!
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sam16111986
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Re: Exeter now in trouble?

Post by sam16111986 »

I suspect they are only announcing their intentions because they need a member vote in order to go ahead. If they didn't need that they'd offload the asset and clear the debts in the background and then just move on. I presume it's the cashflow they are looking to protect with increasing costs of virtually everything the monthly the payments maybe looking steeper than they'd like in forecasting.
jgriffin
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Re: Exeter now in trouble?

Post by jgriffin »

Rugbygramps wrote: Fri Nov 04, 2022 4:54 pm Anybody know what this non rugby asset might be.
Anything from the hotel to the freehold on the development land to the south and east.
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speedski
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Re: Exeter now in trouble?

Post by speedski »

https://www.bbc.co.uk/sport/rugby-union/63822167

Mr Rowe's opened his cash sack again...
tigerburnie
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Re: Exeter now in trouble?

Post by tigerburnie »

They are feeling the pinch like a lot of other clubs, quite a list of players leaving them and it seems a concern over a lack of local young talent coming through. Paying off their debts instead of paying inflated wage bill sounds like a sound long term plan to me.
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