Exeter Chiefs on brink of US takeover after landslide vote

Exeter Chiefs are set to become the second English rugby club to get investment from America within 24 hours after their 700 members overwhelmingly voted in favour of an expression of interest to buy the club from AFC Bournemouth owner Bill Foley.

Another West Country-based outfit, Cornish Pirates, announced on Thursday morning that Pittsburgh-based Stonewood Capital principals Kenn Moritz and John Tippins had invested a seven-figure sum in the club and they were targeting promotion to the Gallagher PREM.

The Pirates, who enjoy a close relationship with the Chiefs, became the first club to get American money and believe they could move to English rugby’s top table within five years, which would be a massive shot in the arm for the sport in the far South West.

The Chiefs have moved a step closer to becoming part of Foley’s Black Knight Sports and Entertainment empire, which includes French club Lorient, New Zealand’s Auckland FC and the NHL franchise Vegas Golden Knights.

Foley’s investment vehicle, Cannae Holdings, is behind the takeover of the Chiefs, who began looking for investors at the start of the year when chairman and chief executive Tony Rowe said that he could no longer fund the club.

Cannae Holdings will now enter into a 60-day due diligence process that the club have said will not be completed before the end of the month, according to a statement released after the meeting on Thursday evening.

Rowe, who talked the meeting through a letter of intent, says that he hopes an offer will follow from Cannae Holdings, whose chief executive Ryan Caswell was spotted in Rowe’s box during their defeat at the hands of Northampton Saints last month.

“This does not represent a firm offer. It is just a non-binding expression of interest at this stage, but, hopefully, an offer will follow, and we can begin negotiating the terms of the sale,” said Rowe.