Wrexham Football Club Finances – A Look Back To 2021-2022
Wrexham Football Club Finances – 2021-2022
Wrexham Football Club has been on a rollercoaster ever since two Hollywood stars decided to invest. We already know that they are moving up from the National League thanks to beating Boreham Wood 3:1. As champions they will once again enter the English Football League. They will certainly gain even more experience on to how to win the jackpot. But we’re going to look at their finances over the previous year, to see in what shape they are before hitting the big time with the prospect of lucrative TV rights.
A Huge Growth Spurt For Wrexham Football Club
Wrexham Football Club’s financial records for the 2021-2022 season, which marked Ryan Reynolds and Rob McElhenney‘s first full year as owners, have been disclosed. The accounts show a remarkable increase in turnover, rising by 404 percent to nearly £6 million, setting a new record for non-League football. Despite this substantial growth in income, Wrexham incurred a loss of £2.9 million. The loss can be attributed largely to higher player wages and football-related expenses as the club pursued promotion to the English Football League (EFL). Additionally, the accounts reveal that the owners, operating through The R.R. McReynolds Company LLC, loaned £3.67 million to the club, primarily to finance the acquisition of the Racecourse Ground’s freehold. They also invested an additional £1.2 million in the form of shares.
Here at Jackpotfinder.com we’ve thoroughly examined Wrexham Football Club’s financial reports to address some pertinent questions. One such question is whether achieving promotion to the EFL and being subject to the spending restrictions of League Two in the 2023-2024 season will necessitate curbing expenditure.
The First Season Under Reynolds And McElhenney
To clarify the timeframe in question, these accounts cover the period up to June 30, 2022. Essentially, they encompass Wrexham’s first complete season under Reynolds and McElhenney’s ownership. During this campaign, Wrexham secured a second-place finish behind Stockport County. However, their hopes of a fairytale ending were dashed as they suffered defeat to Grimsby Town in the play-offs leaving many fans out of pocket after backing the team to win with 22Bet Sportsbook. The same story applies to other online Toto sites. Notably, the accounts include the acquisition of the Racecourse Ground for £2 million from Wrexham Glyndwr University, marking the club’s ownership of their home stadium for the first time since August 2011. The financial impact of the Welcome to Wrexham documentary, which aired on Disney+ in the UK and FX in the United States in autumn 2022, is not reflected in these financial statements.
What Key Wrexham Football Club Figures Stand Out?
In addition to the previously mentioned £2.9 million annual loss and £6 million turnover, there are other noteworthy figures. Breaking down the revenue, matchday income amounted to £2.65 million in the 2021-2022 season, while retail income reached £1.3 million. Sponsorship and advertising for Wrexham Football Club contributed £1.05 million to the overall revenue. All of these figures represented substantial increases compared to the previous season, which was heavily impacted by COVID-19 restrictions that kept the Racecourse gates closed. Football costs also saw a significant rise, reaching £3.94 million, a 294 percent increase. This includes various football-related expenses such as player and staff wages, as well as travel costs for away matches.
Wrexham Football Club Wages Bill Is Not Public
Unfortunately, Wrexham Football Club accounts did not provide a comprehensive breakdown of profits and losses. Even a precise wage bill figure is not available. However, in Episode 11 of Welcome to Wrexham, Shaun Harvey, the advisor to the board, informed McElhenney that the additions made during the January 2022 transfer window would push the annual wage bill to approximately £2.3 million. It is understood that this figure went up further in the final months of the previous season. This was due to a few players negotiating new contracts, resulting in a wage bill of £2.5 million. The number of staff across the club also rose from 80 to 195.
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A Huge Jump In Spending
Going deeper into the Wrexham Football Club accounts, Wrexham spent £1.2 million on players during the financial year, which includes transfer fees and agent fees. This amount is a significant increase from the mere £10,000 spent in the 2020-2021 season. The club set a new record transfer fee when Ollie Palmer joined from AFC Wimbledon during the January window for £300,000.
If promotion had been achieved last season, the club would have been responsible for an additional £250,676 under the terms of the transfer deals. These extra payments would have been due to both the players involved and the selling clubs. Despite the substantial figures, supporters can take comfort in knowing that Reynolds and McElhenney consider themselves to be just getting started “in this wonderful place we have taken to our hearts.”
Does Wrexham Football Club Pay Interest On The Owner’s Loans?
Yes, the club does pay interest on the loans. The interest rate is set at three percent above the current Bank of England base rate, which currently stands at 4.25 percent. Therefore, the interest on the loans being paid currently amounts to 7.25 percent. In the financial year ending on June 30, 2022, the interest charged totaled £43,679.
According to the directors’ report accompanying the accounts, there is no immediate pressure to repay these loans. They were put to use to finance the purchase of the Racecourse Ground and stadium improvements. Additionally, Reynolds and McElhenney invested an additional £1.2 million in the club by purchasing shares. National League regulations require all funds to be introduced as equity. That is unless they are intended for capital projects like stadium expansion. Or, in Wrexham’s case, repurchasing their home ground.
How Will Promotion Impact Wrexham Football Clubs Financially?
Promotion would result in an immediate increase in revenue, even before the start of the season. All League Two clubs receive a central payment football jackpot from the English Football League (EFL) of approximately £1.1 million, which covers their share of TV income, sponsorship, and the annual Premier League solidarity payment. This payment alone would represent a significant seven-figure increase. Especially when compared to what Wrexham Football Club currently receives as a member of the National League.
Furthermore, additional TV payments could follow if Wrexham’s matches are broadcast live by Sky. In such cases, the home team receives £20,000 per game, while the away side receives £10,000. The EFL’s streaming service could also prove highly lucrative. Especially since the majority of the revenue goes to the clubs whose supporters purchase the streaming passes.
Wrexham Football Club Streaming Revenue
Streaming was approved by the National League in December, and Wrexham has already experienced tremendous popularity in this area. Only figures from the two-month period up to February 7 are available. However, sales for matches featuring the Welsh club have generated £225,000 in revenue. After accounting for costs, Wrexham Football Club receives approximately 40 percent of this amount. While this is a welcome source of income, it is likely to be overshadowed in the EFL. This is due to the club’s international fanbase, which is not subject to the UK’s Saturday 3 pm TV blackout. Bradford City, the best-supported club in League Two but with the primarily domestic appeal, expects to earn around £300,000 through the iFollow service this season.
The Salary Cost Management Protocol
When promoted, Wrexham Football Club will need to adhere to the EFL’s Salary Cost Management Protocol in the following season. This protocol limits League Two clubs to spending 55 percent of their turnover on wages. Fortunately, due to the club’s rapidly expanding income streams, this should not pose a problem. If Wrexham’s current wage bill for this season falls within the £3-3.5 million range, as it appears to be, the club would comply with the protocol. This is thanks to a turnover that already compares favorably to most other teams in the fourth tier.
Salary Increases Are Inevitable
The squad under Parkinson’s management consists of players who have previously competed at the EFL level. So there’s an argument that only minimal changes are necessary to make a significant impact in League Two. Nevertheless, every manager likes to rejuvenate their team. Wrexham Football Club’s growing commercial revenue enables them to do so. In the league, the average wage bill amounts to slightly less than £2 million. Even the most well-supported club Bradford City spent £2.3 million on salaries in the 2021-2022 season. So this increased spending capacity could play a crucial role.
Wrexham Football Club: The Future Is Looking Bright
Undoubtedly, exciting times lie ahead for Wrexham Football Club after they achieved promotion this season. Particularly with the forthcoming opening of the new Kop stand ahead of the 2024-2025 season. A betting man at 22Bet Sportsbook would happily put money on the Red Dragons to top their new league next season. In fact, to make money betting this season, it makes sense to bet on Wrexham as one of the best jackpot winning strategies. This addition will increase the capacity of the Racecourse by approximately 5,500 spectators. It is no surprise that the directors’ report accompanying the 2021-2022 accounts includes the statement: “The directors believe that we have not yet come close to reaching the full potential of the club.”
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