Wrexham’s financial landscape reveals significant losses but potential profits for its Hollywood owners
Wrexham: So, it turns out Ryan Reynolds and Rob McElhenney’s investment in Wrexham isn’t all sunshine and rainbows. A football finance expert claims they could be down by as much as £20 million. Yikes!
But here’s the twist: if they decided to sell the club today, they might still walk away with a profit. Kieran Maguire, the expert, says their efforts have really turned things around for Wrexham since they took over about four years ago.
They’ve gone from being a non-league team to competing at the top of League One. That’s a huge leap! But it hasn’t come cheap, as Maguire pointed out on a podcast. Even with the buzz from the “Welcome to Wrexham” documentary, the financials are a bit shaky.
When they bought the club in November 2020, they immediately pumped in £2 million. Most of that went to player salaries, trying to lure talent like star striker Paul Mullin. Apparently, they were paying some of the highest wages in non-league history, which they called the “Wrexham tax.”
And it didn’t stop there. They also loaned the club £3.67 million to buy the Racecourse Ground and upgrade facilities. Even the pitch was a headache, costing them way more than expected.
Despite the costs, the team has been on a roll. They won the National League title in 2023 and got promoted again last year. Their revenue has skyrocketed from £2.5 million in 2019 to £10.5 million in 2023, thanks to big sponsorships and a surge in merchandise sales.
Fans are flocking to games, and attendance has hit over 13,000 at times. But here’s a kicker: the club doesn’t actually make money from the hit documentary. It’s more about marketing and exposure, which helps boost retail sales.
With all this increased revenue, they’re managing to navigate the EFL’s Financial Fair Play Rules. They can spend 60% of their turnover on wages and transfers, which is a big deal.
Now, they don’t have to shell out as much to attract players, but they know they’ll need to invest more if they want to compete in the Championship. Recently, they welcomed new minority investors, the Allyn family, who have a solid business background.
In the end, while the losses might look rough, smart moves have helped protect their investment. Maguire believes Wrexham could sell for between £20 million to £30 million if the owners stay involved. It seems like Reynolds and McElhenney are in it for the long haul, enjoying their connection with the fans.
