Wrexham’s Annual Revenue Jumps 75% as Losses Also Soar
Wrexham AFC reported financial results Thursday that highlight the rocket ship the business has been on since Ryan Reynolds and Rob McElhenney acquired the club in 2020.
Revenue soared 75% to $13 million for the year ending June 30, 2023. Before the Hollywood stars bought the club, annual revenue typically ranged from $2 million to $4 million. Retail merchandise was the biggest category at $4.3 million and up nearly 200%. Sponsorship revenue increased 79% to $2.4 million, while matchday rose 18% to $3.9 million based on current exchange rates.
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The club’s surprise run to the fourth round of FA Cup during the 2022-23 season helped football revenue nearly triple to $1.7 million.
While revenue was up big, Wrexham posted a net loss of $6.4 million, 76% higher than the year before. Payroll was 71% higher to $6.9 million. The team said these losses would not be repeated and that it now generates enough income to cover operational costs.
“These losses were deemed necessary to allow the Club to maximize its full potential in the shortest time practically possible,” the club said in a statement.
Reynolds and McElhenney have funded the club out of their own pockets, and the amount owed to The R.R. McReynolds Company at the fiscal year-end was $11.3 million.
“The Club is under no immediate pressure to repay these loans at the expense of the progress we seek to achieve,” Wrexham said in their financial release. Further financial support will be provided for capital expenditure projects Wrexham is planning, including increased capacity of The Racecourse Ground and the development of a training facility for the men’s and women’s teams.
The team expects “significantly” higher revenue for the 2023-24 season after its promotion from the National League to the English Football League
Wrexham, which currently sits in third place in the EFL League Two standings, is attempting to gain promotion for the second straight year. The top three League Two teams at the end of the season automatically get promoted to League One, and the next four teams compete in a playoff for the fourth promotion spot.
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