Wrexham 'set to take financial hit' in blow to Ryan Reynolds and Rob McElhenney
Reynolds and McElhenney completed their takeover of Wrexham in 2021.
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Topics: EFL Championship, Wrexham
Jack Kenmare
Topics: EFL Championship, Wrexham
A new report claims Wrexham are facing a 'financial hit' as they continue to push for a place in next season's Premier League.
Back in February 2021, Hollywood actors Ryan Reynolds and Rob McElhenney completed an unprecedented takeover of then-National League side Wrexham for a fee believed to be around £2 million.
Since that day, the co-owners have reaped the rewards after investing a significant amount into the club. They have achieved three consecutive promotions and currently sit in the Championship play-offs with 34 games played.
If they do manage to achieve a fourth promotion this summer, the riches that come with Premier League football will undoubtedly take the club to the next level, both on and off the pitch.
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However, it appears they are about to take a financial hit, with the club 'likely to lose some of its money' held at collapsed UK currency brokerage Argentex Group Plc, according to US outlet Bloomberg.
The report states that Wrexham had placed a sum of £4.6 million ($6.2 million) with Argentex, a company that collapsed in July as a result of soured foreign-exchange trades, according to documents filed in the UK.
Administrators for Argentex now expect customers like Wrexham to receive only 60-80% of their funds, according to company filings.
"That would suggest a loss of between roughly £900,000 and £1.8 million," the report adds. "The administrators don’t expect to make payments to customers until early 2027."
In good news, it was revealed last month that recent investment at Wrexham has boosted finances by almost £50 million, as per the BBC.
If they do achieve promotion to the Premier League this summer, Wrexham's broadcast revenues will skyrocket.
Speaking to the BBC, football finance expert Kieran Maguire gave an insight into the subject.
"If Wrexham are promoted to the Premier League, then they will come under the umbrella of the new squad cost ratio, which effectively would allow Wrexham to only be allowed to spend 85% of their revenue on players," said Maguire.
"Because they're coming from a fairly low base, Wrexham will have huge flexibility.
"They will also have commercial income which will - while probably still bottom half of the Premier League - still be higher than that of quite a few clubs.
"Their matchday income, given the capacity and the relative lack of hospitality boxes, won't be particularly high, but their broadcast revenues will go from the £11m to £12m that they're in receipt of this season to a minimum of £110m.
"I suspect it will be far higher than that because, from a broadcaster's point of view, they will be an attractive proposition."
Maguire added: "So I don't anticipate any problems for them in the Premier League should they be promoted."
SPORTbible has reached out to Wrexham for comment.