Wrexham, the Welsh team purchased by Ryan Reynolds and fellow Hollywood actor Rob McElhenney in 2021, disclosed its financial figures for the latest fiscal year, revealing that the debt owed to the celebrity owners has surged to over $11.4 million.
This marks a significant increase from the previous year, with the amount owed jumping from approximately $4.67 million to $11.4 million, by the end of June 2022.
Despite a rise in turnover from around $7.5 million to $13.3 million, and optimistic future prospects, Wrexham’s losses have also escalated, reaching $6.4 million compared to $3.66 million in the previous period.
Financial Challenges for Reynolds and McElhenney
Reynolds and McElhenney acquired Wrexham, one of the oldest soccer teams globally, for $2.5 million while it was in the fifth tier of English football. Subsequently, the team has been promoted to the English Football League and is aiming for consecutive promotions, which would propel them to the third-tier League One.
Currently, Wrexham sits third in League Two and is gearing up for a crucial home game against table-topping Mansfield. The top three teams at the season’s end automatically secure promotion, while the next four compete in a playoff for the final promotion spot. Wrexham currently holds a three-point advantage over fourth-placed MK Dons, with an extra game in hand.
Wrexham justified the club’s losses as essential to expedite its growth potential. The club emphasized that it faces no immediate pressure to repay these loans, as it focuses on achieving progress. Further financial backing will be secured to support ongoing capital projects, such as expanding the capacity of its Racecourse Ground stadium.
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The club highlighted the success of the documentary “Welcome to Wrexham,” which chronicles Reynolds and McElhenney’s journey as soccer club owners, as well as increased revenue from participation in the EFL, as factors driving future turnover growth.
Moving forward, Wrexham anticipates that its income will continue to rise, ensuring operational costs can be met without incurring further significant losses.
