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Wrexham's route to success

The accounts for Ryan Reynolds and Rob McElhenney’s first full season at the helm at Wrexham reveal how turnover soared by 404 per cent to almost £6million, another record for non-League football.

These soaring income levels, however, couldn’t prevent Wrexham from posting a loss of £2.9million, much of which was down to a hike in player wages and football costs as the club chased promotion.

The figures also reveal how the joint owners, via The R.R. McReynolds Company LLC, had loaned the club £3.67million, primarily to fund the purchase of the freehold to the Racecourse Ground. Another £1.2million was invested in the form of shares.

Matchday income accounted for £2.65m in 2021-22 and retail income £1.3m. Sponsorship and advertising also brought in £1.05m.

Football costs were also up significantly to £3.94million, a rise of 294 per cent. This figure includes all football expenses, ranging from player and staff wages through to travel costs for away matches.  The wage bill is thought to be about £2.5m.   Staff numbers across the club rose from 80 to 195.

Delving a little deeper into the accounts, Wrexham spent £1.2million on players during the financial year, a sum that includes transfer fees and agent fees (up from just £10,000 in 2020-21). The club’s record transfer fee was broken when Ollie Palmer joined from AFC Wimbledon in the January window for £300,000.

Does the club pay interest on the £3.7million in loans from the owners?  It does, yes. At three per cent over the Bank of England base rate, which at the moment stands at 4.25 per cent. This means the interest on the loans being paid currently is 7.25 per cent. In the financial year to June 30, 2022, the interest charged was £43,679.

Revenue will go up immediately after promotion, even without a ball being kicked. All League Two clubs receive a central payment from the EFL of around £1.1million, covering their share of TV income/sponsorship and the annual Premier League solidarity payment.

This will be a seven-figure increase on what Wrexham receive currently as a member of the National League. Further TV payments could follow if the club’s matches are shown live by Sky, with £20,000 paid to the home team per game and £10,000 to the away side.

The EFL’s streaming service could also prove very lucrative, not least because the clubs whose supporters buy the passes bank the lion’s share of the money.  Streaming was given the green light by the National League in December and Wrexham have proved hugely popular already. The only figures available so far cover the two months to February 7, with sales for matches involving the Welsh club raking in £225,000.

 

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