Jean MartinOwning a soccer club is hitting Ryan Reynolds’ wallet as Wrexham, the Welsh team bought by Reynolds and fellow Hollywood actor Rob McElhenney in 2021, reported nearly 9 million pounds ($11.4 million) owed to celebrities in its latest financial year.
Rising Debt and Increased Turnover:
The amount owed to celebrities rose from 3.7 million pounds ($4.67 million) in the previous year to nearly 9 million pounds ($11.4 million), despite a rise in turnover from nearly 6 million pounds ($7.5 million) to 10.5 million pounds ($13.3 million). However, losses increased to 5.1 million pounds ($6.4 million) from 2.9 million pounds ($3.66 million).
Initial Purchase and Promotion:
Reynolds and McElhenney purchased Wrexham, one of the world’s oldest soccer teams, for $2.5 million while the club was in the fifth tier of the English game. The club has since been promoted to the English Football League and is bidding for back-to-back promotions.
Current Performance and Future Plans:
Wrexham is third in League Two and aiming for promotion. The club’s losses are considered necessary to maximize its potential, and capital expenditure projects, including stadium capacity increases, are planned. The club is under no immediate pressure to repay loans, and further financial support is planned to facilitate growth.
Positive Outlook and Revenue Streams:
Despite financial challenges, Wrexham anticipates continued growth in turnover, citing factors such as the popularity of the documentary “Welcome to Wrexham” and increased revenue from participation in the EFL. The club aims to ensure that the income generated will cover operational costs.
