Wrexham issue statement explaining Ryan Reynolds and Rob McElhenney's huge financial losses
Wrexham has disclosed that Hollywood owners Ryan Reynolds and Rob McElhenney more than doubled their investment in the club last year.
The actors celebrated their third anniversary since taking charge in early February, and the team is potentially a month away from becoming a
Maintaining their place among the top three would make it back-to-back promotions after their record-breaking run to the National League title a year ago. Now, the Welsh club has announced the exact increase in funding from its multi-millionaire owners across their final campaign outside the Football League.
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Their latest annual report and financial statements up to 30 June last year represent another historic achievement. Turnover almost doubled year-on-year from £6 million to a National League record £10.5m, with a quarter of that coming from outside the United Kingdom.
That figure also exceeds the income generated by all 24 teams in League Two last season and most clubs in the third tier. The team's top revenue stream came from their retail operation, which grew from £1.3m to £3.4m.
Advertising and sponsorships also supplemented that by rising from £1.1m to £1.8m. The team's run to the fourth round of the FA Cup also more than doubled its on-pitch revenue from £530k to £1.3m.
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But losses also increased from £2.9m to £5.1m. The total losses since the takeover stand at £10m, with the club's payroll increasing from £4.1m to £6.9m played a part in that.
Over £1m also went towards signing players to take the total cost of its squad to a fifth-tier record £2.2m. The club also spent £3.5 million on its infrastructure as work continues to redevelop the Racecourse Ground, taking its total over the last two years to £8m.
But loans from its owners rose considerably from £4.1m to £6.9m. The club addressed its outlook in a statement on Thursday (28 March), explaining: "The financial losses suffered by the club since the takeover shouldn’t be repeated, with income generated by the club now sufficient to meet the operational costs of the club going forward," the club said.
"These losses were deemed necessary to allow the Club to maximise its full potential in the shortest time practically possible.
"The Club is under no immediate pressure to repay these loans at the expense of the progress we seek to achieve, and further financial support will be provided/secured to support the capital expenditure projects the club is currently planning, which includes increasing the capacity of The Racecourse Ground and the development of a training facility for all the Club’s teams.
"The year-on-year income comparisons since the takeover, show the potential of the Club. These will significantly increase again for the year ending June 30, 2024, following promotion and the continued popularity of Welcome to Wrexham
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