Wrexham announce losses in annual review but there’s good news for Ryan Reynolds and Rob McElhenney
Wrexham are set to announce a £2.7million loss for the financial year ending June 2024, but loans from owners Ryan Reynolds and Rob McElhenney have now been repaid
Wrexham, owned by Hollywood stars Ryan Reynolds and Rob McElhenney, are expected to record a financial loss of £2.7million in their latest accounts. Despite this deficit for the financial year ending June 2024, it's an improvement on the £5.1m losses recorded in 2023.
The recent loss includes £824,000 triggered by bonuses due to Phil Parkinson's team's promotion to League One. However, the club has seen its annual turnover skyrocket to a staggering £26.7m, largely thanks to global interest sparked by the celebrity owners.
This represents a 155 per cent increase compared to its turnover of around £10.5m in 2013. The record-breaking sum for a then League Two team is primarily attributed to the publicity generated by the Welcome to Wrexham documentary.
The popularity of the series has enabled Wrexham to secure commercial partnerships with companies like United Airlines and HP, resulting in sponsorship revenue soaring from £1.9m to £13.2m. In another significant development, loans provided by Reynolds and McElhenney worth £15m have been repaid in recent months.
The debt clearance followed the introduction of the New York-based Allyn family as new minority investors in October and several large share issues. The documentary series 'Welcome to Wrexham' has given the football club a significant financial lift since Reynolds and McElhenney took over in February 2021. However, with the fourth season coming to an end, there's talk of updating the owners' vision to secure the club's long-term stability, in case the show ends.
A key part of this plan is the expansion of the Racecourse Ground stadium, starting with a new 5,500-seat Kop stand, which has been approved by Wrexham Council and is set to begin this summer. This comes as Wrexham are aiming for a third consecutive promotion, currently sitting second in League One.
Club executives said: "A strategic review of the club's mission statement will be undertaken, following the success to date of the club, however the principles won't materially change. The specific emphasis remains the same, to deliver success on the pitch and take each of the club's senior teams through their respective divisions at the earliest opportunity.
"The directors are taking the relevant action to ensure that the long-term sustainability of the club can be achieved and not anchored purely on playing success or the continuation of the Welcome to Wrexham documentary.
"Increasing the capacity at the Racecourse Ground is a fundamental requirement of creating a long-term business plan for the club along with putting in place a staffing structure of suitably qualified individuals that will enable the maximising of all the opportunities available to us."
The club's financial situation has seen its wage bill soar from £6.91m the previous year to over £11m, contributing to its losses. Additionally, close to £5m was spent on legal and professional fees, some directed towards companies owned by Reynolds and McElhenney.
Club statements indicate that payments to Reynolds and McElhenney's firms, More Better Industries and Maximum Effort, were for marketing efforts for 'Welcome to Wrexham' and managing commercial deals in the States. Financial records show a shift in revenue sources, with 52.1 per cent now coming from abroad, mainly North America, in contrast to 47.5 per cent from the UK and the rest from Europe.
The report also celebrates the club's achievements on the field, noting: "The 2023/24 season was one that brought success on the pitch for the men's team who achieved promotion from EFL League Two, having achieved promotion from the National League the season before.
"Following the early announcement that the Welcome to Wrexham documentary would be continued for a third series to cover the events on and off the pitch for the 2023/24 season, this enabled the club to achieve further commercial growth. The documentary, while not delivering any direct financial return for the club, provides us with a marketing platform that can be monetised through the delivery of TV exposure for our partners and is our 'point of difference'."
It continues: "Turnover for the year was £26.725m (2023: £10.478m) which we believe to be a record for any club in League Two. As noted below the popularity of Welcome to Wrexham and the engagement by its viewers are the biggest factors in the 155 per cent growth, followed by the additional revenue generated from the EFL over those received in the National League."
Full details of Wrexham's latest accounts are set to be released early next week, offering a more comprehensive insight into the club's financial performance.