Joe Gorman, Exeter City CEO: ‘The Club with 4700 Owners!’ (Ep65)
Apr 15, 2025
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Joe Gorman, CEO of Exeter City, leads a fan-owned football club competing in League One with over 4,700 owners. He discusses the unique challenges of this model in an era of wealthy club owners, emphasizing how they competently blend finance with performance. Gorman reveals the success of turning a £5m academy investment into a £20m return and highlights the importance of transparency and trust with fans. The conversation covers sustainability strategies, community involvement, and the need for inclusivity in developing women's football.
Exeter City's unique fan ownership model fosters democratic decision-making and community engagement, empowering 4,700 members to influence the club's direction and operations.
The club's financial sustainability strategy emphasizes prudent spending, aiming to balance annual losses while investing in player development and generating revenue through a successful academy.
Exeter City's commitment to inclusivity and representation extends to women's football, with plans for strategic development aimed at making the women's team more self-sufficient while expanding their fanbase.
Deep dives
Fan Ownership Structure
The club operates under a fan ownership model with 4,700 trust members, each contributing a minimum of £24 per year. This system allows for a democratic approach to decision-making, as trustees are elected annually, bringing various perspectives to club governance. Members can influence not just sports operations but also business priorities, emphasizing a community-driven identity. This unique structure promotes a sense of belonging among fans, aligning financial contributions with the growth and direction of the club.
Financial Management and Sustainability
Financial sustainability remains a primary focus, as the club generates around £100,000 annually from member fees while striving to balance operational losses of approximately £1.5 million per year. The challenge lies in developing a business model that doesn't rely on owner financing, which is typically prevalent in the football industry. Instead, the club prioritizes prudent spending and seeks to build cash reserves while pursuing calculated risks that could lead to returns on investment, especially in player development. A five-year forecasting plan is now in place to gauge long-term financial health and guide investment decisions.
Academy Investment and Player Development
The club has invested £5 million into its academy, resulting in a remarkable £20 million return from player sales over the years. The approach centers around developing players who can thrive in the Premier League, thus maximizing their potential for future transfers. This creates a sustainable growth model, where the academy acts as a pipeline for talent that ultimately supports the club financially. The focus on nurturing young talent reflects the broader club philosophy of being a long-term player in football rather than merely achieving short-term success.
Community Engagement and Women's Team Growth
Engagement with local communities is vital, and the club acknowledges its responsibility to represent both genders through the integration of a women's team. The team's recent successes, including promotion, align with the club's commitment to inclusivity and representation. Financially, the women's squad currently operates at a loss, which is supported by the men's team, but strategic plans are underway to make the women's team more self-sufficient. This dual focus on men's and women's football aims to broaden the fanbase and convert women's football attendees into trust members.
Adapting to Market Pressures
As wage inflation rises in the league, the club faces increased pressure to balance competitiveness with financial prudence. The average wage budget in League One has dramatically increased, prompting concerns about maintaining competitive parity without overspending. Despite these challenges, the club aims to find unique opportunities to differentiate itself from wealthier competitors through innovative marketing and community engagement strategies. The leadership remains optimistic, viewing these pressures as chances to reinforce the club's identity and commitment to a sustainable, fan-centered model.
Today we welcome Exeter City CEO Joe Gorman. This show is long in the making. One of the most requested guests we have had. Why? Well Exeter are one of football’s biggest rarities; a fan owned club. This means they cannot rely on the wealth and exuberance enjoyed by many to succeed on and off the pitch. They actually have to try and make the business make sense.
Punching above their weight for many years, the club sits in League One alongside mega rich teams like Birmingham and Wrexham, and are more than competitive. So how does a club owned by 4700 fans paying £24 a year compete at the top level? How have they turned a £5m investment into the academy to a return of £20m. And why is Joe adamant this is a club here to be the best football team, not just to pat on the head and applaud for doing things unusually well.
A truly unique model. A truly unique conversation. This is the other side of the ‘Business of Football’.
On today’s show we discuss:
Exeter: A Fan-Owned Club:
What does it mean to be owned by the fans and how does it actually work when you have over 4700 ‘owners’ involved in the club?
Is Joe’s job made easier or harder without having the pressures exerted on management by demanding multi-millionaire owners chasing the glories of Premier League football?
How does the business of the club actually work in the context of making decisions to spend money. Is it consensus driven?
The importance of building trust: “the fans need to know I have the best interests of the club at heart”
Why this is more than a club to patronise for doing well off the field and how Joe, along with manager Gary Caldwell, is installing a winning culture from top to bottom.
Would the club ever look for investment away from the fanbase?
A Unique Playing Model:
When you can’t go out and spend millions on a star player, how do Exeter uncover talent who fit their model?
The importance of creating value for top teams by nurturing talent and being a home that clubs want to send their brightest young players to.
Buying players for 5-figures and selling them for 7-figures; winning for Exeter is more than just 3 points on the pitch.
The value of the sell-on clause: why having a percentage sale on players sold is such a valuable cash flow addition.
The fanbase needs to understand and get behind this business model for it to work. How do they relate to a team with pure ideals that may have a ‘success ceiling’?
Competing in the EFL:
The financial disparity between clubs even in League One is becoming more apparent than ever. How do Exeter leverage their unique model to compete with big spenders?
Are clubs like Wrexham and Birmingham good for the Football League?
Whose responsibility is it to capitalise on the increased exposure afforded to the football league with big investors and TV deals now a common occurrence?
Why does Joe fear wage inflation will be the thing that makes competing on a manageable playing field too hard to navigate?
