Wrexham AFC receives £18m from government despite Hollywood backing | Wrexham

Wrexham AFC have rocketed up the English football leagues thanks to the deep pockets of Hollywood movie star owners Ryan Reynolds and Rob McElhenney. But the club also unwittingly received £18m in aid from another supporter: the Welsh taxpayers.

According to UK government state aid disclosures, the club received a non-refundable grant of approximately £18 million from the Welsh government through the local council; This is far more than the direct aid listed for any football club in Britain.

Wrexham Borough council previously announced the club would receive an award. “significant amount” A £25 million grant from the Welsh government to redevelop the site adjacent to Wrexham General railway station’s stadium, Racecourse Ground. However, the council had not previously announced that the football club would receive most of the money directly.

According to company records in the UK and US, Wrexham is owned by Reynolds and McElhenney, who changed his name to Rob Mac. Reynolds, producer and star billion dollars McElhenney, producer and star of the Deadpool film series and comedy series It’s Always Sunny in Philadelphia, completed the acquisition in 2021.

Welsh government money began flowing in even as star owners were producing the Disney TV documentary Welcome to Wrexham, a four-series series showing the takeover of the “fairytale” – reportedly attracting up to 5 million viewers per episode. While Wrexham AFC did not make any direct income from the series, other companies owned by Reynolds and McElhenney are thought to have benefited from lucrative production deals.

The stars have also helped the club win sponsorship deals from global brands such as Facebook owner Meta, United Airlines and TikTok – names that would be the envy of Premier League teams.

Stefan Borson, football finance expert and head of sport at law firm McCarthy Denning, said: “This amounts to an £18m non-refundable subsidy to a private company currently flirting with a valuation of £350m. Its current owners are very rich and liquid private individuals based in the US.”

“The club and its owners will enjoy this status for the next 50 years but there will never be a refund to taxpayers or a direct profit from the club’s rise.

“The current ownership has put Wrexham on the global map but it is difficult to understand why funding this stand in this way is a priority for the government.”

Apart from the grant, the Welsh government has also purchased land adjacent to the stadium to accommodate a new stand in 2020. Welsh government repeatedly we talked Its £25 million investment provided support for local transport, without stating that most of the money would be given to the football club.

The grant comes at a time when council budgets are under pressure. News website Wrexham.com this week Report on alleged “budget crisis” At some schools in the city, some schools are likely having to cut spending. £3 million budget deficit. Mark Pritchard, who leads the group of independent and Conservative councilors who control the council, said this week He told the Leader newspaper If the Welsh government does not increase its £263 million council budget, “redundancies will be inevitable”.

The council said funding for the project was not taken from its own budget, but was provided solely by grants from the Welsh government. The club is also required to make the Racecourse Ground (Cae Ras in Wales) available for other sporting events and concerts, and the council said this would create “additional benefits for residents of north Wales”.

A spokesman said: “Hydrokskoy is an important cultural and heritage asset for the city of Wrexham and we are obviously keen to preserve it for the future.

“Using Welsh government grant funding, the council has provided funding to the football club to ensure the redevelopment plans are brought to a standard that will enable international matches to be played in Wrexham once again.”

A Wrexham AFC spokesman said the funds would be used for general improvements to the stadium and a new build. Kop stand This will take the stadium to the international level.

The spokesman said: “The impact of these improvements and the ability to host international sporting events in North Wales will be a catalyst for both local job creation and a general economic boost to the region due to increased visitor numbers attracted to events and economic activity whilst in the area.”

The £18 million to be given to Wrexham will also represent a significant advantage over other clubs that do not apply for direct state aid. Stockport County finished one place behind Wrexham this summer and were denied a hugely lucrative promotion to the Championship; stock port It generated revenues of £9 million For the year ending June 2024.

Other football league clubs mentioned in state aid statements were Plymouth Argyle, which received £2 million, Swansea City, which received £400,000, and Bradford City, which received £670,000.

Records show two direct donations from Wrexham Borough council to Wrexham AFC Limited. According to records, the first was a £3.8 million payment given in February 2022, and the second was a £14 million payment given in September. Wrexham’s 2023 accounts mention £4 million in “deferred grants”.

In the record, the council claimed: “The site’s location and financial difficulties mean that the redevelopment of the stands and environmental improvements are each commercially unsustainable to the standards required by UEFA.” In the statement, it was stated that “first of all, since the value of the economic and social benefits that the project will bring is not taken into account in the monetary-oriented investment decision-making process, there is no incentive for the private sector to continue the project.”

But Wrexham AFC’s 2024 accounts suggested this was not the case. “Increasing the capacity of the Condition Area is a fundamental condition for establishing the club’s long-term business plan,” they said.

Welcome to Wrexham does not contribute directly to Wrexham AFC’s revenues. However, global exposure has helped it massively increase its turnover from £10.5m in 2023 to £26.7m in the year to June 2024, according to the latest published accounts. The Financial Times reported that revenue last year could reach £50 million; This includes selling 100,000 shirts for a city of approximately 66,000 urban residents.

The Welsh government said: “Public sector funding will make a significant difference between the club meeting league requirements and meeting tougher international fixture standards.

“This investment helps create a venue capable of hosting competitive international football in the world’s oldest international stadium, strengthening the local economy and providing a suitable landmark for Wrexham.”