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.

Wolves get raw deal from FFP

I used to see a lifelong Wolves fan for lunch once a month. He was approaching ninety, but still went to games. Sadly he passed away the other week. As football finance guru Kieran Maguire has noted, Wolves continue to be constrained by financial fair play rules. Radio 4 this morning described them as this year's 'crisis club' and the pessimists have certainly been piling in. Martin Samuel wrote sympathetically in the Sunday Times yesterday, saying that the Premier League drives talent away with regulatory red tape: 'Why could Al-Hilal sign Neves? Because Wolves needed the money. And why did Wolves need the money? Because the club had to comply with an artificial construct known as financial fair play. So Wolves are going skint, yes? No. There is no suggestion that Wolves are in financial trouble, only that they are failing to meet the rigours of FFP. Wolves’ owners appear to have the money to run the club, and invest in the club, and in fact came up with a pow

Gold standard ground boosts Tottenham's income

The gold standard in European football grounds is the Tottenham Hotspur stadium in north London, a £1bn construction project completed in 2019. Its impact on the club’s finances has become increasingly clear as the effects of the pandemic have faded. Previously, the average fan would spend less than £2 inside the ground on a typical match day, but now that figure is about £16, thanks to new facilities including the longest bar in Europe and an on-site microbrewery. Capacity has gone up from 36,000 at the club’s previous home of White Hart Lane to 62,000. The new stadium — built on land adjacent to White Hart Lane — has opened the door to a broad range of other events that have helped to push commercial income up from €117mn in 2018 to €215mn in 2022. Last year, Tottenham hosted US singer Beyoncé for five nights on her global Renaissance tour, two NFL matches, as well as rugby games and heavyweight boxing bouts. Money brought in from football has gone up too. Match day income is

Charlton takeover approved

The long awaited takeover of Charlton Athletic by SE7 Partners from Thomas Sandgaard has been approved: https://londonnewsonline.co.uk/se7-partners-obtain-efl-approval-for-charlton-athletic-takeover/ Charlton have had unhappy experiences with owners for over a decade, so how this works out will remain to be seen. There is certainly potential there, but will it be realised? This interview with Charlie Methven gives detail not available elsewhere: https://thecharltondossier.com/charlie-methven-on-the-record/

The Political Economy of Football V2

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