Wrexham and their INCREDIBLE Financial Situation…

Wrexham’s rise has been spectacular, but how are they balancing the books? 💰

In this clip, the lads break down what promotion to the Championship means financially — from the huge investment already made by Rob McElhenney & Ryan Reynolds, to what they’ll need to earn (and spend) to stay competitive. Are they making a loss? Are the rewards worth the risk? 👀

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just want to let you lot know that if you’re watching this clip on the FOcast YouTube channel the full episode is now available to watch exclusively on Spotify and it’s free come on right so we’re going to get into a little bit of the financials aren’t we Tom we’re going to get into what this means for Rexom for next season for what they’re looking to earn in the Championship because the money goes up quite significantly doesn’t it from League One it does it does and we’ll just give a bit of context so before the club was taken over their their revenue was 1.14 million um and then the last financial accounts which was at the end of the last League 2 season so June 2024 so these this does not include this League One season what’s revenue broken down into okay generally speaking it’s match day revenue merch i.e kit sales broadcast money and commercial sponsorships yeah all of which Rexoms are very very strong but last year last financial year the turnover was 26.7 million um which just to give a bit of context the League 2 average is about 5.4 million wow and then Championship excluding the clubs which have had parachute payments is thought to be around 22 million so so in League Two they’re outperforming Championship clubs in League Two they’re they’ve got more revenue than Championship clubs in League 2 and so we will get the financial results for League One about this time next year march next year about March and and you would expect that it will be a lot higher again right yeah now they did make a a loss so the previous year 23 was a five million loss last last year was 2.7 million loss now you go they’re making 20 how can they do that when they’re turning 27 million they had 15 million pounds worth of loans from Ryan Reynolds and Rob Mhenny that have now been repaid so Rexim are moving into the Championship where the profit and sustainability rules are that of a similar to the Premier League so they have they can’t post losses more than 39 million over a three-year period but Rexom are debtree now rexom are loan free is it fair to say then Tom that Rexom will probably possibly be the best equipped financially football team in the Championship next season no in in terms of what they’ll be able to spend because you’ve got clubs to come down with massive wealth and big turnover and parachute payments but in my opinion they’ll have the best model yeah so they’ll have the best model so they’re going to be a debtree club that revenue is massive so if we look at those four kind of pillars of of of revenue their match day revenue won’t be that of a Birmingham who have got the stadium twice the size southampton the merch debt free that’s got to be rare right yeah it’s got to be really really interesting to know if there’s other teams in the championship debtree don’t owe any loan payments to anybody yeah I’m sure I’m sure there’s one or two i’m sure but I don’t know i don’t know we I haven’t looked into that but the the where Rexom will really excel is the broadcast money will be broadly similar to the others but they have the kit and the merch sales right and also then the commercial sponsorship because this is where Rexom’s model whilst Ryan and Rob are in charge is is really good and really robust and it is organic but it’s just supercharged by them owning it so if Rexom were owned by me I’m not getting HP and United and Vista Print and Tik Tok and Stock Cold Brew to to sponsor the club but they are it’s good isn’t it united Airlines Experian and it’s it’s amazing it’s absolutely amazing and the other thing with the TV money is that um that jumps the more you’re on telly the more you earn and Rexom you know for a fact will be on telly next season more than any other championship team so so yeah so in the League One from the kind of solidarity payments and TV money all in it’s approximately 1.7 million quid right with championship you knew you knew exactly how much it was straight away around 9 million toes but you straight away it’s about 9 million yeah it’s because I’ve done negotiating bonuses before and talking about going up to that league and being like “Right we want this is our squad bonus.” And they’re like “What are you basing that off?” I was like “Well I’m basing that off the fact that this is the commercial that you get in this league and this is the commercial mount you get in that league.” And they were like “Oh fair enough.” Well Ben is that kind of unheard of for a player to be prepared in that way yes that’s that’s why you want a bentoser that’s why you need a Bentoser doing your Vegas trip and doing your your player bonuses for next season as well because if you can come armed with all of that data and all of those details financial documents then they haven’t got a leg to stand on right and in fairness to Rexom the players have delivered the players have earned their bonuses so for getting promoted to the Championship this year it’s going to cost the club 2.3 million in transfer clauses and bonuses which which is about 5% of their losses no it’s about 5% sorry of their turnover from the League 2 season so it’s not an insignificant amount of money either way it pales in complexion to what they’re about to earn and you would say that they’ve earned it as well oh absolutely you’d say that they’ve earned it you’re talking2.3 million there’s players in the Premier League that will have a 2.3 million pound um kind of loyalty payment each season yeah yeah you’re talking about a whole squad here will that be split evenly or will it be done based on first team players appearances how will that work exactly that it’s all it’s kind of prora there’s going to be all of these bonuses that they’ve got to pay will be individual bonuses so when a player signs they’ll say “Right if we do get promoted you’ll get a payment of X.” If you play 20 games for example then I’ve last two years I’ve done the they they’d send me like the email and be like “Right this is what everyone’s owed bonus-wise.” I actually remember it because of Fuzzy last year you left after four games or something and Fuzzy wasn’t on the list and another couple people weren’t on the list and I was like “No hang on a sec can you alter that we need to put them on the list.” whether people need the money want the money whatever whether it’s £10 £100,000 £10,000 whatever still entitled and that’s your money so like they’d send out a list and they’d be like “Right you played for example 46 games you are owed it’s split into um points it’s a point system so you’ve got five you get five points for a start you get three points for coming on and you get one point for being in the squad or on the bench.” So if you start 46 games you get five points for 46 games you times five times 46 is 230 so and then you do the same with you know if people play 44 and then two they come on twice you know you got the 44 that’s good good way of doing it so that’s the way it’s the fairest way of doing it possible the only time it doesn’t become fair is when you’ve got people that travel to every game and don’t make the bench so like you try and put in a travel point like a more of the goalkeeper in the squad yeah third choice keeper for example or you know and then obviously you got the same situation at home but then that would be down to the manager’s discretion because you could have someone say who’s injured and they’d be like oh yeah but I was in the squad at the home game well hang on a sec it’s the manager’s discretion so if you weren’t in the squad it’s down to him so that’s how it’s that’s how the total’s done basically that’s how they work it all what do you think when you’ll have a lot of people listening to this what do you think when they will say “Hang on a minute you’re talking about but and they get bonuses for that they get unbelievable basic wage and now you’re talking about all these bonuses.” What do you say as a footballer when a fan says that well of course you’ve got you need incentives don’t you that’s like your I know everyone fans would argue that they don’t everyone has different incentives don’t they some people’s money some people’s um wanting to the pride and and good and the ego and all that and the security of course it is but also like everyday jobs get bonuses so like for me I’ve always asked for bonuses to be at the end of a year so like you’d have you’ll have a not on top of that you’ll have win bonuses won’t you so you’ll have win bonus every week or some people have appearance fees and I’ll be like right can you put all that in the end of the year because that’s my bonus that’s a bonus that’s a Brucey bonus end of season pay for holiday blah blah blah so I don’t see why you wouldn’t I mean ultimately if it’s performance related performance related you’re paying a bonus because you’ve ultimately achieved yeah yeah and you’ll also have some people you might have someone who’s got like a um a recent poor injury um history so they they would the club might sign them on not so much money but they’ll give them a bigger appearance boner because that’s your like that’s the club security against them so say for argument’s sake let’s go right normally you’d pay someone a£1,000 a week you might go “Oh look we’re going to pay you £350 a week but when you’re fit and available and you’re playing we’re going to put that up to,000 pound we’re going to give you 650 um appearance fee.” And that’s just the way the club just protects themselves and also that makes the player work harder to get in the team to earn their appearance thanks everybody for watching we hope you enjoyed this clip of the Foscast if you would like to watch the full episode it is now available exclusively on Spotify for free [Music]