Wrexham 'will break financial rules' with promotion as Ryan Reynolds warned
Wrexham's Hollywood owners have been told they face an uphill challenge in reaching the Premier League in the near future without being punished over financial breaches
Wrexham's Hollywood owners have been warned they will struggle to reach the Premier League in the next couple of years without breaking financial rules. The Welsh side have enjoyed enormous success since being bought by actors Ryan Reynolds and Rob McElhenney more than four years ago.
Under the management of Phil Parkinson, Wrexham have achieved promotion in each of their last three seasons, lifting them from the National League into the Championship. The Red Dragons have been backed in some quarters to challenge again in the second tier next term as the co-owners look to achieve their dream of taking the club all the way to the Premier League.
However, a football finance expert has now cautioned the A-list pair that a short-term push for the top flight will be difficult to achieve without contravening profit and sustainability (PSR) rules. Dr Rob Wilson said he believed a mid-table finish would be more realistic for Wrexham as they look to establish themselves at the next level.
He told BettingLounge: "I don't see how Wrexham can get into the Premier League in a season or two without breaching the financial regulations that exist within the division. However, you would probably argue given their trajectory that if they were to get into the Premier League, they would probably stay there for a little while.
"Then they could afford to take any hit if they were then ultimately relegated at some point. I think mid-table is probably where I think you'd see an incredible amount of investment to try and protect that. It links with the new stadium and with some of the broader plans to activate the commercial and the broadcast opportunities.
"Probably mid-table would be a good shout, but they'll have to invest heavily to achieve that. I'm probably with some of the Championship club chief executives and I think it'll be incredibly difficult for them to do that mainly because of parachute payments.
"All those clubs coming out are three times more likely to be promoted next year than anybody that doesn't have a parachute payment. The odds are heavily stacked against them, but who'd have thought Ryan Reynolds and Rob McElhenney would have owned Wrexham a few years ago."
Last week, it was reported that Reynolds and McElhenney are seeking fresh investment in Wrexham in a move which could see the club's value soar to as much as £350million. It's claimed that bank advisors have been instructed to find potential new investors and to discover if there is a demand.
The new suggested valuation of around £350m would make Wrexham the highest priced team in the Championship. For context, Sheffield United were bought in December by an American consortium for roughly £111m.
However, Dr Wilson has expressed scepticism over the lofty figure, despite admitting to being impressed by the amount of money the two actors have been able to generate.
He said: "It's bonkers, it's just a massive valuation and reflects the Disneyification of Wrexham. It reflects the blend of their asset base, their projected earnings and their projected media exposure based on what they've been able to get through the Disney+ series.
"The global following and the promotion boost that they will have achieved really helps just amplify it. That valuation is nuts. But then football as a product is nuts sometimes. If people want to be involved in that story then it's a great way of raising an additional bit of capital. It's a great way of accelerating your team's progression.
"But they are running a very smart business operation behind the scenes, which is naturally amplified because of the ownership. I don't know what the ceiling is but a club valuation three times that of Sheffield United is really optimistic."
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Wrexham AFC is the arguably the fastest-growing club in the world at the moment thanks to a certain Ryan Reynolds and Rob McElhenney.
The Dragons have achieved two consecutive promotions and are cheered on by crowds from not only North Wales but also from all over the globe, thanks to the success of the Disney+ documentary 'Welcome to Wrexham'.
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