A football club rising from the ashes to reach the English top flight – that’s the story Ryan Reynolds and Rob McElhenney intended to write in real life when they acquired Wrexham FC for 2 million in November 2020.
Since then, the club has secured two back-to-back promotions and is playing English League One football right now. They have also been part of a global hit documentary series, Welcome to Wrexham, which has recently been picked up for its third season.
So, it’s no exaggeration to say that Wrexham is currently one of the most popular football teams in the world. But are Reynolds and McElhenney making money from the club? While it was always intended as a long-term financial investment, has the cash flow started rolling in yet?
Wrexham’s Current Financial Status
Wrexham director Shaun Harvey says that the club is now valued at £9 million, which means the valuation has increased by £7 million within four years of the takeover.
Revenue surged by 75% to £10.5 million for the year ending 30 June 2023. Before the Hollywood stars took over, the club’s annual revenue typically ranged between £1.5 million and £3 million.
Retail merchandise led the way with £3.4 million in revenue, up nearly 200%. Sponsorship followed, growing by 79% to £1.9 million, and matchday income rose 18%, reaching £3.1 million.
Wrexham has taken only three years to reach EFL League One from the National League. And now they are one of the most talked about clubs in the UK. Bookmakers are confident that the Hollywood-powered franchise will make it to the promised land of the Premier League soon.
Betting sites in the UK consider the Red Dragons to be one of the favorites to win League One alongside Birmingham and Wycombe. If they can reach the Championship, it could unlock even more revenue opportunities for the Welsh club.
Are The Owners Making Money?
Despite the surge in revenue, the club’s debt to its owners continues to rise. The latest report from the club shows that it owes £8.58 million to Reynolds and McElhenney. However, the club also acknowledges that it’s a growing pain the club has to endure for the time being.
“The club is under no immediate pressure to repay these loans at the expense of the progress we seek to achieve,” the club officially said, “and further financial support will be provided/secured to support the capital expenditure projects the club is currently planning.”
Wrexham currently has one of the biggest wage bills in League One. When they secured promotion to the third tier, it was reported that Wrexham spent £107,238 per week on wages during its League Two campaign.
That means Wrexham was the biggest spender in the division and would have been the sixth-highest-spending club in League One.
Since beginning their League One campaign, Wrexham have increased their payroll expenditure. The club now spends £139,988 per week, making them the fourth-highest spenders in League One, behind Birmingham, Huddersfield, and Rotherham.
The club also plans to expand the capacity of the Racecourse Ground. Wrexham regularly attracts over 10,000 spectators per game, surpassing the average attendance in League One. This expansion will require substantial investment from the owners, who are more than willing to support it.
Conclusion
Wrexham is growing as a club and bringing in more money than ever. But funding its fairytale journey has taken a severe toll on the pockets of its owners.
However, this is a long-term project that should pay off in the future.
